Flight delayed or cancelled? Know how to file a travel insurance claim

Flight delayed due to fog? File a claim if you have a travel insurance policy

Would you like a nice sandwich and beverage on your flight? But what if it’s served to you on the airport tarmac, where you have been forced to squat in the biting cold while your winterwear is packed inside your checked-in luggage and your flight is indefinitely delayed?

If the visuals of Indigo Airlines passengers having their meals on the Mumbai airport tarmac due to fog-induced flight delay have shaken you, you need to read up on your rights as a passenger to deal with such scenarios.

Most travellers buy travel insurance when they travel abroad to insure themselves against unforeseen medical expenses on foreign shores. But general insurers, often through tie-ups with travel portals, also offer travel insurance for domestic travel, which could be a one- to two-hour flight.

There's no harm in ticking the box to indicate your acceptance, but here’s why you should understand the terms and conditions. Last weekend, most flights to Delhi were delayed for up to 11 hours.

Also read: Flight cancelled or delayed? Here's how you can claim compensation

Food, accommodation expenses reimbursed in case of delay, cancellation

“A travel insurance plan typically will pay a claim if the flight is delayed or cancelled due to any inclement weather conditions, like fog. For flight delays, a flat benefit is usually paid out by the insurer if the flight is delayed beyond a stipulated period, which is typically two to three hours,” says Vivek Chaturvedi, Chief Marketing Officer and Head of Direct Sales, Digit General Insurance. Depending on the company and plan variant, this period could also range from one to six hours.

The key aspect to understand here is how the insurer will calculate the delay.

A flight delay is typically calculated by factoring in the actual departure time. “Some insurers may take into account the exact time the aircraft leaves the parking bay or when the parking brakes of the aircraft are released, and it makes the first move. Others may take into account the time when the aircraft lifted off, went wheels up, and left the airport strip to arrive at the actual departure time of the aircraft. If this is in excess of the number of delayed hours mentioned in your policy compared to the scheduled departure time, a customer would be eligible for the claim,” he adds.

Also read: Not just hospitalisation, travel insurance also compensates delayed flights, lost bags, laptops, passports

Specific expenses that are covered depend on the product and variant that you have chosen. “Generally, insurance companies indemnify reasonable and necessary expenses (up to the sum insured as per the policy selected), which cannot be recovered from any other source (for instance, airlines). However, a few covers offered on a benefit-basis will pay the claims, irrespective of the airline’s compensation,” says Amrish Dubey, Vice President, Travel Insurance, Tata AIG General Insurance.

For instance, in the case of Bajaj Allianz, the domestic travel policy is a benefit-based (claims paid out as per pre-defined amounts) cover where the benefit amounts for flight delay and cancellation can range from Rs 100 to Rs 50,000.

You will also have to pick the policy variant. These specify the ‘deductible period' — the policy is triggered only in the case of a delay beyond a specified period (and there could be a cap too). “In the case of our policy, these options typically range from a one-hour delay to a six-hour delay. This means that if a flight is delayed within the chosen timeframe, the traveller can file a compensation claim,” says Aashish Sethi, Head, Health SBU and Travel, Bajaj Allianz General Insurance.

If you have incurred expenses on accommodation or food due to the delay in flight take-off, your insurance company will reimburse these expenses. “Airlines could pay — or issue coupons — for food purchased by customers for the period of delay. So, let’s assume you used the coupons, but because of the further delay, you bought coffee at the airport. Even this expense will be reimbursed by the insurance company,” says Manas Kapoor, Business Head, Travel Insurance, Policybazaar. “Likewise, if you are not happy with the accommodation facility and wish to upgrade to a better hotel or room, again, you can file a claim.”

Policy fine print to determine claim validity

However, if you decide to take a stroll and shop at the airport outlets, your insurance company will not pick up the tab. You will have to foot the bill for any leisure activity on your own.

If your flight is cancelled because of inclement weather — for instance, poor visibility due to fog — your travel policy will pay for any additional cost that you incur to reschedule or book a new flight. “If you have lost out on any non-refundable deposit related to any hotel booking at your destination, your insurance company will make good the loss,” says Kapoor.

However, if you are, say, a resident of Delhi and are travelling to another destination and your flight gets cancelled or delayed, your insurance company will not entertain the accommodation claims.

“The rationale is that you can always go back home. On the other hand, if you are travelling from Chandigarh to Mumbai with a stopover in Delhi, the flight gets delayed or cancelled, and you are provided accommodation you are not satisfied with, you can upgrade to a better room or hotel and file a claim for the purpose,” says Kapoor.

Before filing the claim, acquaint yourself with the circumstances under which your claim could be rejected. “For example, if a customer did not end up taking the flight or did not check in to the airport due to any reason, the flight delay claim might get rejected. A claim might also not be paid in case the communication related to the flight delay or cancellation was made public or communicated to the customer well in advance prior to the departure time,” says Chaturvedi.

Similarly, if the flight is delayed due to strikes by airline employees or due to government regulations, which were communicated to the traveller well in advance, the claim will not be valid.

Know how to file a claim

Kapoor says it is best to approach the intermediary through whom you have purchased the policy. Ensure that you keep all the bills to support the claim of having incurred the expenses handy.

You can also call the insurance company and initiate the claim through email or a phone call. “The subsequent process involves submitting essential documentation, including the ticket itinerary, a duly filled-out claim form, NEFT details, and a cancelled cheque. Additionally, for the Know Your Customer or KYC process, the customer must provide copies of their Aadhar and PAN cards,” says Sethi.

Some insurance companies, including Bajaj Allianz, Tata-AIG, and Digit, use technology to track flight departures in real-time — in the case of any delay, claim notification is automatically sent to the passenger-policyholder, who only has to upload documents such as a boarding pass and provide bank account details, among other things.