In the recent days, some people on social media claimed to have cancelled their Maldives trips due to alleged racism by Maldivian ministers and the #BoycottMaldives movement.
Travel insurance reimburses the expenses that can't be reimbursed, such as prepaid costs for flights and hotels that were unused. Overseas travel insurance typically comes in two categories: trip cancellation by named perils and trip cancellation by any reason.
Many travel insurance policies encompass coverage for trip cancellations by named perils, meaning that claims are honoured if unforeseen events, medical emergencies or other unavoidable circumstances listed in the policy occur and if an individuals cancel their trip without reasons covered under Named Perils, the claim may not be paid according to standard policy terms.
Some policies have introduced an additional coverage option known as trip cancellation for any reason. This involves an extra premium and provides more extensive protection, allowing trip cancellations for any reason.
In the event of trip cancellation caused by the airline refusing to operate due to government regulations, the insurance company examines the specifics and provides compensation for the cancellation in accordance with the sum assured and the terms outlined in the policy.
It is crucial to grasp both the inclusions and exclusions of the policy taken to maximize its benefits. Generally, events within an individual's control may not fall under the purview of a standard trip cancellation policy, unless one has taken a cancellation by any reason policy.
Compiled by Syed Muskan