Are flight cancellation and delay just an insurance sales pitch, or does it help in dire need? T&C apply

Passengers get compensation during cancellation and even for delays in flight schedules. However, there are terms and conditions.

Passengers get compensation during cancellation and even for delays in flight schedules upon certain conditions. The refund is made against expenses incurred at the airport, say for an hour, or more if your next flight is delayed, too. There is, however, a condition on the duration of delay for refunds, as airlines calculate delays on their own terms.

The waiting, however, can soon become an urgency, especially at the airport. A responsible airline will frequently update passengers about the delays from their prompt. Some good ones even offer refreshment and hospitality. For such a scenario, it’s good to know that airlines, or insurers, will provide you with a partial or full refund for food, drinks, and even for hotel beds, depending on situations of the delay and the schedule of your next flight.

It’s no secret that the cost of food and drinks at stalls, cafes, shops, restaurants, and lounges at the airport is whooping. Keep it a practice to save every food bill, even screenshots of UPI payments, wherever you can. Importantly, get information on reasons for the flight to delay. You may be asked to furnish proof of flight delay or cancellation, especially if you have a travel insurance plan.

Let’s explore some of the terms and conditions applied by airlines and other travel agencies (OTAs) on flight cancellation, exclusions on travel insurance policies—ifs and buts.

DGCA's take on flight cancellation and delay, with or without a travel policy.

How airlines deal with flight cancellation

The Directorate General of Civil Aviation (DGCA),  recently filed a proposal to mandate airlines to provide a 'Look-in option' of 48 hours for travelers to allow cancellation without levying any additional charges, except for the normal prevailing fare for the revised flight of their choice. It suggests limiting the departure timeline for five days on domestic flights and 15 days on international flights, from the date of booking tickets.

While the proposal is still under observation, Indian airlines' charges for flight cancellation vary. For instance, Indigo’s flight cancellation charge before 3-24 hours before departure is Rs 4,999, and Rs 3,999 for cancellation within 72 hours and beyond. Similarly, if you opt for alternative flights after buying the ticket, the change fee is Rs 2,999 for 3-72 hours, and Rs 2,999 beyond 72 hours.

Indigo in partnership with Liberty General Insurance offers flight cancellation cover if you opt for their ‘zero cancellation plan’ during the time of flight booking, starting from Rs 500. It offers sum-insured cover up to Rs 5,000. This means that if you paid Rs 4,500 towards the cost of the domestic flight ticket, the same will be covered by the insurance company up to Rs 5,000.

However, terms and conditions apply. For example, cancellation of a flight has to be made at least 24 hours before the flight is scheduled for departure. Notably, their policy wording doesn’t mention anything on flight delays or change in schedules.

How MakeMyTrip and other OTAs handle flight cancellation

MakeMyTrip, like other travel agencies (OTAs), offer “zero cancellation” option when purchasing domestic flight tickets to avail of refunds. This option costs as low as Rs 149, which can be purchased during the time of booking. The refund is, however, subject to time of booking vis-à-vis hours and days left for departure. Here’s a quick look at the OTA’s ‘zero-cancellation’ option.

• Valid only on select one-way and-return domestic flights
• Complete waiver is provided only on tickets bought 24 hours prior to departure
• Promotional offers and last-minute deals are not eligible for any refund
• Includes service fee for processing cancellations.

Like other OTAs, MakeMyTrip’s zero cancellation plan doesn’t include refund for flight delays or rescheduling of the flight.

Do you really need travel insurance? Here’s how a policy helps

Like any other general insurance policies, travel insurance is a comprehensive plan that is offered to individuals, family, students, and even for senior citizens. Unlike “zero cancellation” plans by airlines and OTAs, insurance companies provide a comprehensive travel plan. Besides flight cancellation, it provides reimbursement of expenses during flight delays up to certain limits, or missed flights, and connecting flights.

“Flight cancellation coverage is no longer a luxury; it is a core travel-insurance benefit in today’s day and age. It reimburses planned, non-refundable charges such as airfares or hotel reservations when trips are cancelled or cut short due to circumstances beyond the traveler's control, such as illness, natural disaster, airline strike, or government advisory,” said Manish Dodeja, COO, Care Health Insurance.

However, such a policy comes with exclusion.

“There are certain ifs and buts on guidelines, which is always provided with this kind of cover. Perhaps, travel insurance plans have the longest policy wording among other general insurance policies,” said Meet Kapadia, Head of Travel Insurance at Policybazaar.

Analysts say insurers mention everything from small events and scenarios for which claims cannot be filed against cases where there is a flight cancellation or delays, and are cited under exclusions in policy wording.

For instance, a quick look at the Acko’s travel insurance policy for flight delay and missed flights, it says the benefit will be payable provided that the insured person gets a written proof from the common carrier about the length of the delay, if the information is not available in the public domain.

Kapadia reminds applicants to check what all scenarios are mentioned in the policy wording, a legally binding document or an agreement between the insurer and the insured. Insurance companies do mention everything from a small exclusion for each event and scenario. It’s an IRDAI mandate.

“Looking only for benefits that the insurance covers is like reading half part of the overall package, but it is important that you go through the exclusions part,” said Kapadia.