Flight Cancelled? Need to Know for Trip Cancellation

Travelling is an exciting experience, but unexpected circumstances can sometimes disrupt our plans. That’s where travel insurance comes in, a policy designed to protect your financial investment by covering risks like trip cancellation, lost baggage, and medical emergencies.

Tips & Recommendations

Before purchasing travel insurance, reviewing the limits and exclusions of your trip cancellation coverage is crucial. You should familiarize yourself with the “covered perils” required to trigger a claim, such as unexpected illness, travel advisories, cancelled flights, or job loss.

Prioritize Emergency Assistance

Before you leave, save your insurer’s Emergency Assistance number in your phone and keep a physical copy in your wallet. In a medical emergency, you (or someone with you) should call them immediately (often before receiving treatment if you can) to ensure the insurer can coordinate with the hospital and guarantee payment.

Check your policy for the specific 24/7 toll-free or collect-call numbers.

Advisor Tip: When you purchase a policy, ask for the wording booklet. Review the exclusion list specifically; while often written in legal jargon, your insurance advisor can help clarify these points to ensure you aren’t surprised during a claim.

Critical Alert: Government Travel Advisories
Be cautious of any Government of Canada travel bans or advisories. Even if there are no major weather events or disruptions, most policies will not take effect if the government has issued a “Do Not Travel” advisory on its official website before your departure. Always check the current status of your destination at travel.gc.ca.

Documentation Recommendation: Take photos of your receipts and medical reports as you receive them while abroad. Having a digital backup on your phone makes filing the claim significantly faster once you return to Canada.

Pro Tip: If your doctor advises against travelling before you book your trip, cancellation coverage cannot be used for a refund. As the saying goes: If the doctor says NO, then don’t GO.

How Trip Cancellation & Interruption Has You Covered

Understanding exactly who and what is covered is the first step to a stress-free claim. Here is a breakdown of the covered perils under a standard TuGo Travel Insurance plan:

Coverage Categories	TuGo Travel Insurance
Unexpected illness, injury and/or death of: (You, family, travel companions, hosts, or friends)	✓
Medical condition related to COVID-19	✓
Quarantine and self-isolation	✓
Travel Advisory	✓
Schedule change / Cancelled flight or tour	✓
Natural disaster affecting home or business	✓
Travel Visa denial	✓
Job loss or Job transfer	✓
Pregnancy (Unexpected complications)	✓

Reward Points and Non-Refundable Travel Costs

Many travellers use reward points to save money, but it is important to note that travel insurance generally cannot reimburse the cash value of reward points used for flights or hotels. While some policies cover the fees to reinstate those points, the points themselves are not “cash.”

Understanding Non-Refundable Reimbursements

Scenario 1: Refunded by Provider

If an airline cancels your flight and provides a full refund to your credit card, the insurer cannot reimburse you. The item is no longer “non-refundable” because you have already been made whole by the airline.

Scenario 2: Pre-Paid Shuttle Services

Suppose you prepaid for a shuttle service that refuses to offer a refund despite your flight being cancelled. In this case, you can submit that receipt under trip cancellation coverage to recoup your out-of-pocket costs.

Travel insurance coverage for cancelled flights

Documentation & Receipts

Proper documentation is the backbone of a successful claim. To expedite the process, provide a clear timeline of events and proof of purchase for all expenses.

Essential Claims Checklist

1
Proof of original purchase/payment: Keep all original receipts and booking confirmations.
2
Detailed memos: Explain why additional expenses (e.g., last-minute hotel or transport) were necessary to help the adjuster understand your timeline.
3
Records of partial refunds: Provide documentation of any amounts already refunded by travel agents, airlines, or hotels.

Common Exclusions & Limitations

While trip cancellation insurance provides significant peace of mind, it is not a “cancel for any reason” policy unless specifically stated. Understanding these three common exclusions will help you determine when a claim is likely to be honoured.

Known Events

Cancellations caused by any situation you were already aware of before booking your trip or buying your insurance are not covered.

Weather & Natural Events

Claims related to hurricanes, storms, or other natural disasters are excluded if the event had already started before you purchased your policy.

Epidemics & Pandemics

Any claim related to an epidemic or pandemic is excluded if the outbreak was already occurring anywhere in the world at the time of purchase.

Exclusion Scenarios in Practice

Scenario 1: Known & Predictable Circumstances

Sarah books a flight to Florida on Tuesday. However, on Monday, a tropical storm was officially named, and its path was broadcast across major news networks. She decides to buy travel insurance on Wednesday, hoping to protect her trip.

If Sarah has to cancel because the storm hits her resort, her claim will be denied. The policy explicitly excludes any “circumstance known to you” or the public before the date you purchase the insurance. Since the storm was already public knowledge, it is no longer an unforeseen event.

Scenario 2: Weather & Lack of Enjoyment

The Miller family arrives in the Rockies for a long-awaited hiking vacation. Unfortunately, the forecast calls for cold, heavy rain every single day. While the trails are technically open and their hotel is fully operational, they decide the trip is “ruined” and head home early.

The Millers will not be reimbursed for their unused hotel nights. Travel insurance covers a “natural disaster” or a “weather condition” only if it causes a complete cessation of services or makes the destination uninhabitable. Simply being unhappy with the weather (or a “change of mind”) is not a covered peril under this policy.

Scenario 3: Global Epidemic / Travel Advisories

John plans a trip to a country where the Government of Canada has already issued a Level 3 “Avoid Non-Essential Travel” advisory due to a viral outbreak. He buys his policy on the same day he books the flight, thinking he’s covered if the situation gets worse.

If John cancels because he’s worried about the outbreak, his claim will be denied. The policy excludes any loss related to an epidemic or pandemic if the outbreak was already occurring anywhere in the world before the policy was purchased. Furthermore, if a travel advisory is already in place when you buy the insurance, any claim related to that advisory is excluded.

Important Notice: The scenarios provided above are for illustrative purposes only. In the event of any discrepancy between this article and your insurance policy, the actual policy wording and documentation prevail. Always refer to your specific contract for precise coverage details.

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