Why take out travel cancellation insurance?

Travel cancellation insurance is a contract that covers, within the limits of the guarantees taken out, the booking costs lost if you are forced to:

• cancel your trip before departure, or
• interrupt it early,

and if the cause is among the reasons for cancellation covered by the terms and conditions of your contract.

It can be applied to different types of services:

• non-refundable plane, train or ferry tickets,
• accommodations booked with deposit or prepayment,
• package stays (flight + hotel), tours and cruises,
• vacation rentals, clubs, organised trips.

The reasons for cancellation are defined exhaustively in the Travel General Terms and Conditions and the table of guarantees. Only the events expressly listed are eligible for compensation.

To offer an example, when specified in the contract, the following may notably be covered:

• Serious illness, accident or death of the insured, an accompanying person or a relative meeting the contractual definition (e.g. family member to a certain degree or person living under the same roof).
• Unplanned hospitalisation or sudden worsening of a medically established health condition.
• Serious damage to the insured's home (fire, water damage, burglary, etc.) making their presence essential.
• Certain professional situations precisely defined in the contract, such as:
  • involuntary loss of employment,
  • new job making it impossible to leave on the scheduled date,
  • invitation to a professional examination or mandatory training,
  • change in function or unexpected absence of a substitute colleague.
• Refusal of visa essential for the trip, under the conditions provided for by the TC Travel.
• Theft of identity or travel documents, declared to the competent authorities, preventing departure.
• Official summonses (judicial or administrative), when it is expressly stated that they must be heeded.

The exact list of reasons covered can be found exclusively in the Travel General Terms and Conditions and the table of guarantees of the Baloise contract.

What reasons are generally excluded?

Cancellation insurance contracts also provide for exclusions, notably in the event of:

• cancellation without justified reason or without supporting evidence,
• facts, illnesses or events known before the subscription or booking,
• major external events such as certain cases of war, riot, strike, civil or military unrest,
• failure to comply with contractual obligations (deadlines for declaration, absence of supporting documents, etc.).

With regard to epidemics or pandemics (such as Covid‑19), their treatment depends on the general terms in effect and any amendments.

In the event of cancellation for a covered and duly justified reason, trip cancellation insurance may reimburse:

• the part of the trip not reimbursed by the tour operator or the service provider,
• the cancellation penalties provided for in the terms of sale,
• within the limit of the ceiling per person and per trip indicated in the table of guarantees.

In the event of trip interruption for a covered reason, some contracts also provide for:

• a refund in proportion to the unused days,
• and, where applicable, the assumption of certain services reserved but not consumed, according to the conditions provided for in the contract.

In terms of cancellation, one principle applies to all contracts: a risk that has already occurred or is already known cannot be insured.

Therefore, it is recommended to:

• take out cancellation insurance at the time of booking or as soon as non-refundable costs are incurred,
• respect the maximum subscription deadlines indicated in the TC Travel,
• avoid any subscription after becoming aware of an event likely to lead to cancellation.

Some premium credit cards include cancellation insurance, but this is often:

• limited in amount,
• contingent on full payment of the trip with the card,
• restricted in terms of the reasons covered,
• and without any real dedicated assistance service.

Dedicated travel insurance, taken out with an approved insurer in Luxembourg, generally allows:

• higher ceilings,
• guarantees that are easier to understand,
• a support service identified and continuously reachable.

You can view our comparison of travel insurance and credit card insurance.

• the compensation ceiling per person and per trip,
• the deadlines for subscription,
• the timeframes and procedures for declaration,
• the exhaustive list of the reasons covered,
• the contractual definition of relatives and accompanying persons,
• exclusions related to external events and administrative measures.