What Reasons For Cancellations Are Commonly Accepted By Insurance Plans?

What reasons for cancellations are commonly accepted by insurance plans? Trips are canceled, either by the tour company or by the passenger themselves for a variety of reasons, most of which re recognized...

Trips are canceled, either by the tour company or by the passenger themselves for a variety of reasons, most of which re recognized and accepted by travel insurance companies. Some of the more common reasons for a trip being delayed or canceled are an airline strike, or a travel company or airline bankruptcy.

Travel insurance companies generally recognize and insure against two different scenarios where a trip may be canceled - pre-departure cancellation and post departure cancellation. As the phrase suggests, pre-departure cancellation occurs prior to the trip date and at least gives passengers a chance to reschedule.

Post departure cancellation can be the most inconvenient option from a passenger's point of view - imagine being stranded in a foreign country if your cruise line or airline ceases operations. At the beginning of 2006, Independence Air ceased operations causing thousands of passengers to scramble at the last minute to make alternate travel plans.

Statistically, one of the most common reasons people cancel a trip is due to death or illness, either of themselves or a family member. Even the major airlines recognize this eventuality and most of them will work with you as far as refunding or rescheduling a ticket that is normally nonrefundable. You may have to supply information to verify this, such as a copy of the death certificate or a note from the doctor or hospital in question.

As far as the definition of a family member, be aware of who is included in this definition. Family members may include grandparents, step-children and cousins. A general rule is if the person is related by blood to you, they are considered a family member. The definition of family can vary from one insurance company to another, so always make sure you understand.

Bankruptcy is a legitimate reason for a trip to be postponed or canceled, especially in today's economic climate. Many people are particularly concerned about airline bankruptcy - today virtually all the major US airlines with the exception of American, have declared bankruptcy or what is also known as "chapter 11" reorganization. Although it seems as far as the day to day running of the airline, most passengers notice nothing different when they fly.

Cruise lines declare bankruptcy too, although if you book with a large well-established company, the chances of this are rare. Recently, two smaller cruise lines, Glacier Bay Cruises and Great American Journeys declared bankruptcy, affecting thousands of passengers at short notice. If this happens to you, your travel insurance will ensure you get your money back - but it doesn't help as far as finding a replacement cruise.

Many cruise lines also limit their liability for accidents and delays caused by third-party operators who provide their shore excursions and activities. And it is also a fact of life that cruise companies reserve the right to change or cancel ports of call - if this happens, you generally have no recourse. Always carefully read the small print regarding the cancellation or rescheduling of shore excursions and particular ports of call.

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