Popular Credit Cards in India with Trip Cancellation & Trip Interruption Cover

So is there Free Travel Insurance with Credit Cards?

While many credit cards with free flight cancellation are available in India, not all credit cards will offer travel insurance or related benefits. However, you can easily find free travel insurance with credit cards if you do some research.

The exact benefits are different and you should know that these don’t provide comprehensive coverage. Still, these are beneficial for travellers who may not have the time or budget to buy trip insurance before every tip.

Purpose of Trip Cancellation Insurance

Despite all the planning and taking care of every minute detail, you may come across unfavourable situations that may cancel or interrupt your trip.

Suppose you have an international trip planned and just a day before the trip starts, you meet with an accident. With all the bookings done, you will have no choice but to cancel your travel and stay. In most cases, the airline and the hotel may not return your money back as your bookings may be non-refundable.

This will obviously cost you unnecessary expenses. Now imagine that you are abroad on a vacation. But two-three days into the trip, you learn that your house has been robbed in your absence. In this case, you will be forced to cut short your trip and get back home early. Again, you will end up losing quite a lot of money.

As humans, you cannot delay or avoid the occurrence of such unforeseen incidents. All that you can do is buy travel insurance online that covers you against any financial losses arising out of such instances.

Travel cancellation insurance ensures that sudden unavoidable cancellations don’t lead to monetary losses.

Trip Cancellation & Trip Interruption in Travel Insurance

Trip cancellation and trip interruption are travel insurance policy coverage that reimburses prepaid, non-refundable travel expenses in case your trip gets cancelled or cut short due to unforeseen incidents. Trip cancellation covers any financial losses that you incur in case your trip gets cancelled due to an unavoidable situation.

For instance, you lose your job a couple of days ahead of your overseas trip and are unable to go ahead with it. This cover is applicable only if the trip is cancelled before the trip commences.

Similarly, trip interruption covers you against any loss of finances in case your trip gets interrupted by an unforeseen emergency and you are required to immediately return home to India. For example, one of your family members passed away during your trip and you are unable to continue with your trip. This cover is applicable as long as you’re abroad on your trip.

One thing you should remember is that trip cancellation and trip interruption don’t cover all unforeseen incidents. Instead, it reimburses your travel expenses only if the trip has been cancelled or interrupted due to a covered incident.

For example, trip cancellation due to a medical emergency is covered but cancellation due to rejection of visa is usually not covered.

Most travel insurance companies offer trip cancellation and interruption cover as part of their international travel insurance policies. All you have to do is buy travel insurance online at least a day before the start of your trip. However, you can also get trip cancellation and interruption insurance under select credit cards.

How Credit Cards Can Help in Trip Cancellation & Interruption Insurance?

Different bank credit cards can also help provide trip cancellation and interruption insurance coverage. A lot of credit cards come with an in-built travel insurance coverage against many contingencies, including trip cancellation or trip interruption. Here are a few general points to keep in mind:

• To avail of trip insurance benefits, you must have such a credit card and pay for your travel bookings with it.
• Be it hotel stay or airline tickets, the payment should have been done with the credit card that offers trip insurance benefits.
• In case you have made payments for your travel bookings through a debit card or another credit card then the credit card with trip insurance benefits will not cover you against trip cancellation and interruption.

This means you will not receive a refund against your paid airline or hotel bookings and will end up suffering monetary losses.

Credit Cards in India with Trip Cancellation and Interruption Cover

Take a look at some credit cards in India that offer trip cancellation and interruption cover:

1. HDFC Bank Regalia Credit Card

   The HDFC Bank Regalia Credit Card is a rewards point credit card offered by HDFC Bank. It provides comprehensive insurance protection against emergency overseas hospitalisation up to Rs 15 lakh and accidental air death cover for up to Rs 1 crore. The card also offers a lost card liability cover of up to Rs 9 lakhs.

   Eligibility:

   • Salaried persons: must be between 21 years to 60 years with a monthly net income of Rs 100,000 can apply.
   • Self-employed people: must be between 21 years and 65 years with an ITR greater than 12 lakhs and can apply.

2. Standard Chartered Priority Visa Infinite Credit Card

   The Standard Chartered Priority Visa Infinite Credit Card is a complimentary rewards point credit card offered by Standard Chartered Bank to priority banking customers. It comes with medical insurance of USD 25,000 and overseas air accident cover worth Rs 1 crore. It also provides coverage against baggage delay, loss of personal documents and baggage, flight delay and flight hijacking.

   Eligibility:

   • People between the age of 21 years and 65 years with a stable monthly income can apply.

3. YES First Preferred Credit Card

   The YES First Preferred Credit Card is an exclusive privilege rewards point credit card offered by YES Bank. It provides overseas medical insurance worth Rs 25 lakh and accidental death cover of Rs 1 crore. It also offers concierge services for travel and hotel referral and reservation.

   Eligibility:

   • People between 21 years and 60 years can apply.
   • Salaried or self-employed people with a monthly net salary of at least Rs 2 lakh or an ITR of at least Rs 24 lakh can apply.
   • Customers with a fixed deposit of Rs 3 lakh or more in the bank can also apply.

4. Axis Bank Privilege Credit Card

   Axis Bank Privilege Credit Card offers you a lot of activation benefits, travel insurance benefits and other travel benefits such as complimentary lounge access at select domestic airports. The card also offers air accident coverage for up to Rs. 2.5 crore, purchase protection plan up to Rs. 1 lakh, travel document loss covers up to USD 300. It also offers baggage delay cover up to Rs. 300 USD and check-in baggage loss up to USD 500.

   Eligibility:

   • The cardholder must be aged 18-70 years
   • Minimum 6 lakh per annum net income
   • Must be an Indian resident

Things to Consider While Buying Flight Cancellation Insurance Credit Card

You may come across several credit cards that offer trip insurance benefits which may be confusing. When choosing a credit card with free flight cancellation and interruption coverage, you must consider these factors:

• Total Cost of Your Trip - Make sure that the credit card has a sufficient spending limit that covers the total cost of your trip. The spending limit varies from one card to another.
• Travel Benefits Offered - Confirm the travel insurance benefits being offered if you’re paying for travel bookings through a credit card. Many credit cards offer personal accident and baggage loss cover, other than trip cancellation & interruption.
• Earnings Provided - Always confirm the earnings if the travel booking payments are made through the credit card.

Summing It Up,

Unforeseen emergencies occur at any time and spoil all your plans, having travel insurance or free travel insurance with a credit card is a great way to have a safe and reassuring trip. Make sure to pay for your travel bookings through your credit cards to be eligible for in-built trip insurance benefits. If you want more exhaustive coverage, buy a standalone travel insurance plan from Policybazaar before your trip begins!