What is Trip Cancellation and Interruption Insurance and How Does it Work? (2024)

Sometimes, trip cancellation and trip interruption are used interchangeably but they do cover different aspects of your travel.

A trip cancellation plan provides coverage if your trip is cancelled for a covered reason before you depart for your trip. The benefits could include reimbursing you for the cost of non-refundable travel expenses, like trip deposits and flight change fees, if your trip is cancelled because of a covered cause.

On the other hand, a trip interruption plan provides coverage after you depart on your trip. The benefits could include paying for your trip home or to your next destination if your trip is interrupted because of a covered cause.

It is good to keep in mind that trip cancellation and interruption plan may not provide coverage for medical expenses you incur on your trip. So, you may want to purchase a travel medical plan if you are looking for travel medical coverage.

The benefits provided under these types of plans vary by insurer. Therefore, it is a good idea to review the plan details before you purchase.

Highlights:

• How does a trip cancellation and interruption insurance plan help?
• Why should I purchase a Trip Cancellation and Interruption insurance plan?
• What is not covered by trip cancellation and interruption insurance?
• Do I need to get travel medical insurance separately?
• Who is eligible for buying trip cancellation and interruption insurance?
• How much does trip cancellation and interruption cost?
• Is trip cancellation and interruption insurance worth buying?
• Applying for Trip Cancellation and Interruption plan with TD Insurance

If you've faced any of the covered causes as mentioned in your policy, it would be advisable to report the incident as soon as possible to the insurer. Some policies may require you to report the cancellation or interruption within a specified time, therefore, it is best to review the policy documents to understand the reporting requirements.

The requirements for a claim are generally to submit the completed claims form along with any required documents and information. If you meet the conditions for a successful claim based on your coverage, you may be refunded or compensated for some of the financial losses you faced. The benefits, limitations and exclusions under a trip cancellation and interruption plan vary by policy and insurer. The best practice is to review the policy

This type of plan can reimburse you if your trip is cancelled or interrupted for a covered reason. Some examples of covered reasons could be:

• Sickness, injury, death, or quarantine of a member of your travel party.
• A delay that causes you to miss or interrupt any part of your covered trip due to weather, mechanical reasons, or travel advisory.
• Loss or damage to your baggage and personal effects due to theft, burglary, fire, or transportation hazards.
• Death or emergency hospitalization of your host at the destination.
• Involuntary loss of permanent employment.

Every insurer has their own list of exclusions and limitations. Also, you should be aware that any benefit paid will be for eligible expenses and only up to the defined limit as per your policy. Here are some of the exclusions you could come across:

• Pre-existing medical conditions
• Self-inflicted injuries
• Getting involved in criminal activities
• Labour disruptions or strikes
• Giving birth to a child during your trip

While these are just a few of the exclusions you may find, it's best to check your insurance policy for a detailed list. Also, you can check with your travel insurance provider if you have questions.

No matter which insurer you choose, it's always a good idea to check your eligibility before you apply for the plan. Here are some eligibility requirements you may have to meet if you are applying trip cancellation and interruption insurance with TD Insurance:

• You are a Canadian resident
• You are covered by the government health insurance plan of your province or territory of residence during your trip and at the time a claim is incurred.
• Minimum age requirement of 15 days old.
• There are certain medical conditions that could make you ineligible for coverage under a selected plan.

Please read the policy or contact us for more details on eligibility.

There are several factors on which the cost of a trip cancellation and trip interruption plan may depend on. A few things that may determine the cost of such a policy are:

• The total cost of your trip. This may include the cost of non-refundable purchases like flights, cruises and hotels or any other prepaid travel arrangement.
• The amount of coverage you wish to purchase
• The number of travelers who will require insurance coverage
• Your age and the condition of your health
• The duration of the trip

Whether you should purchase trip cancellation and interruption insurance depends on your personal circ*mstances. To determine whether you should purchase this type of insurance, you can consider the following:

• You are travelling internationally or out of your province
• You have multiple layovers as the more connecting flights you have, higher are the chances of facing a cancellation or interruption.
• You are looking to cover the cost to repair or replace your baggage and personal effects due to loss or damage by reason of theft
• You have little to no coverage through your employer provided travel plan or limited benefits with your travel credit card

You can apply for TD Insurance Trip Cancellation and Interruption Plan online². We will let you know of your eligibility provide you with an estimate of how much the coverage might cost based on your response. If you're satisfied with the estimate, you could proceed to purchase.

While experience is a great teacher, it doesn't hurt to get a few tips along the way to help make an informed decision in case of trip cancellations and interruptions.

The trip cancellation and interruption plan can reimburse you for more than just the cost of flights or other travel arrangements like a cruise. Such plans could also cover the cost of meals, accommodations, taxi transportations if your trip is cancelled or interrupted for a covered reason.

Different plans could have different benefits, it is important to read the policy carefully before purchasing.