I have booked an expensive resort for holiday with my family. As per the terms of the booking, if I cancel the trip, the booking amount will get forfeited. Is there any insurance policy to cover loss due to ‘cancellation of vacation’?
Some insurers offer ‘cancellation of vacation’ cover as part of the home insurance policy.
I have booked an expensive resort for holiday with my family. As per the terms of the booking, if I cancel the trip, the booking amount will get forfeited. Is there any insurance policy to cover loss due to ‘cancellation of vacation’?
Varun Prakash, Chennai
It is good that you noted the terms and conditions on the receipt and yes, some insurers offer ‘cancellation of vacation’ cover as part of the home insurance policy. The policy indemnifies the insured for any prepaid amount that could be forfeited for cancellation of hotel rooms and/or holiday resorts. However, the reason of the cancellation should be a consequence of hospitalisation, loss of life, or loss of home due to fire and allied perils. Further, in order to qualify for compensation, such forfeiture must be as per the terms of a contract of booking and/or reservation of accommodation. The maximum amount of liability is, however, limited to the sum insured selected by the insured at the time of insurance.