Five reasons why your trip cancellation Insurance Claim could be denied

[ASEAN NOW News]

Travel insurance with trip cancellation benefits is designed to reimburse you for your prepaid, non-refundable expenses in case you have to cancel your trip for a covered reason.

 

 

But it is not a cure-all.

 

While we understand that everyone's circumstances are unique, here is a look at some of the most common reasons trip cancellation insurance claims are denied.

 

Of course, your local insurer may have different conditions, but in principle here are the most common reasons why they may not pay you back.

 

1. You did not see a doctor before canceling your trip because of illness.

 

Example: Anna has packed her suitcases to fly to Hong Kong for a week-long vacation.

 

The day before she is set to leave, she comes down with a bad case of the flu. Feeling wretched, Anna decides to stay home. She submits a trip cancellation insurance claim, but it is denied.

 

If you or your traveling companion suffers an illness, injury, or medical condition that's disabling enough to make a reasonable person cancel a trip, insurers should consider that a covered reason for trip cancellation.

 

However, a doctor must examine you or your traveling companion and advise that person to cancel the trip — before the decision to cancel is made. If that is not possible, a doctor must examine you within 72 hours of your trip cancellation.

 

2. You did not provide documentation for your trip cancellation reasons and expenses. 

 

Example: Days before he is set to leave for a two-week tour of Cambodia, Javier is dismayed to hear that his tour operator has gone out of business.

 

He submits a trip cancellation insurance claim with the original invoice from the tour operator, but his claim is denied.

 

It is not enough to send a credit card receipt or a single invoice. You need to thoroughly document all of your trip costs, your reason for cancellation and any refunds you may have received. The list of documentation requests may include:

·         Receipts and itemized bills for all expenses.

·         Original of any refunds or expense allowances received from your tour operator, travel agency, common carrier, resort, property management company, or other entity.

·         Copy of resort invoice/vacation rental contract or confirmation.

·         Trip cancellation/interruption claims.

·         Any appropriate documentation that officially explains the cause of your trip cancellation or interruption

·         Any explanation of diagnosis along with your original itemized bills, receipts, and proof of other insurance payments.

·         Original unused tickets, copies of invoices, proof of payments, and other documents that substantiate the cost or occurrence of the trip cancellation or interruption.

·         Documentation of refunds received from the travel supplier(s) and/or common carriers.

·         Copy of the supplier's literature that describes penalties.

·         A letter from the tour operator or an itemized bill from the travel agent stating the non-refundable amounts of the trip costs.

 

In short, send everything you can find that relates to your trip cancellation reasons and costs. This may sound like a lot, but do not get overwhelmed.

 

3. You purchased travel insurance when a massive storm was already on the horizon.

 

Example: Kelly and Gus have been looking forward to their 10th anniversary trip to the Philippines for months.

 

A few days before they are supposed to leave, the Weather Channel reports that Tropical Storm is churning toward the island.

 

"Uh-oh," Kelly thinks. "I’d better get travel insurance."

 

They end up canceling their vacation because of the storm — but their insurance claim is denied.

 

Insurers could name several covered reasons for canceling a trip that can be related to severe weather.

 

For instance:

·         Your travel carrier cannot get you to your original itinerary’s destination for at least twenty-four consecutive hours from the originally scheduled arrival time due to severe weather (or another covered reason)

·         Your tour operator cancels your multi-day tour that was purchased prior to your departure date due to severe weather (or another covered reason)

·         Your destination is uninhabitable

·         The National Oceanic and Atmospheric Administration’s (NOAA) or foreign equivalent has issued a cyclone, hurricane, or typhoon warning at your destination that is in effect within 24 hours prior to your departure date

 

·         Government authorities order a mandatory evacuation at your destination that is in effect within 24 hours prior to your departure date.

 

However, travel insurance is meant to protect travelers against sudden and unforeseen events — not threats that are already on the horizon when the insurance is purchased.

 

If you buy travel insurance after winter or tropical storm has been named, or after the NOAA or a similar agency has issued a warning, your plan will not provide coverage for claims related to that event. Make sure you buy trip cancellation insurance well in advance of your departure.

 

4. You gave up on your trip too soon.

 

Example: The day of Keith's scheduled flight to France, a surprise winter storm grounds his connecting flight. After sitting in the airport for 12 hours, he gets furious and decides to cancel the whole trip. However, his trip cancellation insurance claim is denied.

 

We know trip delays are aggravating. But do not cancel your entire trip because of a short delay!

 

To make a trip cancellation claim, your travel carrier must have been unable to get you to your original itinerary’s destination for at least twenty-four consecutive hours from the originally scheduled arrival time.

 

Keep in mind that your trip cancellation benefits can also help you get to your original destination another way!

 

You can be reimbursed (up to your policy’s Trip Cancellation Coverage maximum benefit) for the reasonable cost of alternate transportation, less available refunds; and the cost of any lost prepaid accommodations caused by your covered delayed arrival, less available refunds.

 

You may also be able to file a trip interruption claim if you miss at least 50% of the length of your trip due to a travel carrier delay or other covered reasons.

 

5. You did not read the terms, conditions, and exclusions for your trip cancellation insurance policy.

 

Example: Shortly before a planned couples cruise to Singapore, Michelle has a huge fight with her fiancé.

 

She calls off the engagement — and the cruise.

 

But travel insurance will not cover her trip cancellation.

 

With a wide array of covered reasons for canceling a trip, travel insurance is designed to protect you in case of many common travel mishaps.

 

However, it is not "cancel for any reason" travel insurance, and that is why it is essential to read all the terms and conditions when you buy your plan.

 

For instance, legal separation or divorce can be a covered reason for trip cancellation, but a breakup is not.

 

The death of a family member can be a covered reason, but the death of a pet is not.

 

We all know that trip cancellation benefits can seem complicated, especially during the current pandemic, so the best advice is to do your homework before booking a holiday, even if you are just booking a hotel.

 

Please let us know if you have had any recent issues with travel insurance, so we can share your information with our many ex-pat viewers?

 

Here are the cancelation terms with the local airline, Vietnam Airlines.

 

Vietnam Airlines Flights cancellation terms and conditions:

 

What is the flight cancellation?

 

Flight cancellation is the cancellation of 01 or more sectors in your itinerary. The tickets are kept for later use.

 

When should you cancel your flights?

 

If you do not take a flight as planned, cancel it immediately after changing your mind to avoid a No show fee which is applied for passengers who no show or cancel their flights within 3 hours prior to departure time.

 

The ancillaries if any are non-changeable/non-refundable. Tickets with Non-changeable/Non-refundable condition are not allowed to rebook/refund after you cancel your flights.
 

If your flight sector has PVI travel insurance, please contact PVI Insurance Company via email [email protected] to request change / refund of insurance documents.

 

Changes/refunds of insurance documents will be subject to the terms of the insurance package purchased.

 

Good luck and bon voyage!

 

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