Staff Writer
Travellers are being urged to consider trip cancellation insurance as a safeguard against financial losses caused by unexpected events that force them to cancel their travel plans.
According to Santam Namibia chief executive officer Franco Feris, uncertainty remains a reality for travellers, with factors such as illness, family emergencies and severe weather capable of disrupting even the most carefully planned holidays.
Trip cancellation insurance is designed to reimburse travelers for prepaid, non-refundable expenses when unforeseen circumstances prevent them from travelling before their scheduled departure date.
Feris explained that the cover can protect significant travel investments. He cited the example of a family holiday to Mauritius costing more than N$119 000, where a sudden medical emergency involving a family member shortly before departure could force travellers to cancel their trip.
“In such circumstances, trip cancellation cover can help travellers recover the non-refundable portion of their expenses, reducing the financial impact of cancelling the trip,” he said.
The insurance typically covers non-refundable airline tickets, prepaid accommodation, tour packages, safaris, cruises, pre-booked excursions and event tickets purchased in advance.
However, Feris noted that claims are generally only valid when cancellations result from unforeseen events beyond the traveller’s control.
These may include medical emergencies affecting the traveller or a travel companion, family bereavement, severe weather events, natural disasters, job loss or the theft of travel documents.
Supporting documentation, such as medical reports, proof of cancellation or airline reports, is usually required when submitting a claim.
The cover applies to cancellations before departure, while separate international journey curtailment or extension cover may apply when a trip is interrupted after travel has already commenced.
Feris cautioned that travellers should familiarise themselves with policy exclusions, as not all cancellations qualify for reimbursement.
Common exclusions include voluntary cancellations, changes of mind, missing or rejected visas, financial difficulties, pre-existing medical conditions, known events that occurred before the policy was purchased, pre-existing travel restrictions and war-related incidents.
“It is imperative to always check your policy wording for full details to ensure you are aware of all the important information,” he said.
He added that trip cancellation insurance is particularly valuable for travellers who have invested heavily in non-refundable bookings, are travelling with children or elderly relatives, or are attending time-sensitive events such as weddings, conferences or group tours.
According to Feris, travellers should ideally purchase cancellation cover immediately after making their bookings to ensure they qualify for the full range of benefits and avoid time-related restrictions.
He also highlighted unspecified event cancellation insurance as an optional add-on that can provide broader protection against a wider range of cancellation scenarios.
The additional cover is generally required to be purchased within two to three days of making the first trip payment or deposit and at the same time as the base travel insurance policy.
Feris said travellers should assess the potential financial impact of losing prepaid travel expenses when deciding whether to purchase cancellation insurance.
“If you can’t afford to lose what you’ve paid for your trip, you can’t afford to travel without trip cancellation insurance,” he said.
