What is trip termination in travel insurance?

Atrip termination in travel insurance, also known as a trip curtailment, occurs when a person cuts short his travel and decides to go back home ahead of schedule. When a person terminates a trip, there may be prior reservations and advanced payments that cannot be redeemed, like airplane tickets and the unconsumed hotel stay. That’s where the travel insurance companies come in to help by reimbursing a policyholder’s trip-related expenses when he has cut his trip short due to certain unexpected reasons.

Worldwide travel insurance providers usually agree to compensate the insured when he cancels a trip because his family members or business partners suddenly passed away while he was on the trip. (Insert GoBear making a sad face.) Travel insurance companies can also reimburse the trip of an insured person’s close relative when that relative has to travel because the insured person died or got seriously injured during the travel. (Insert GoBear tears.)

The remaining unrefundable expenses related to a terminated trip, such as costs paid to the hotel, airline and travel agency, may also be reimbursed when the insured person had to get out of his travel destination because a bad situation (riot, disaster, strike, civil commotion, etc.) developed while he was on the trip. Just take note that fewer insurers cover for trip termination in travel insurance due to these reasons, as compared to trip cancellation.

Speaking of which, trip termination is not to be confused with trip cancellation. In the former, a person ends a trip in the middle of it. In the latter, a person backs out of a trip before it begins.



How does coverage differ between insurers


Fortunately, all 37 of the plans from GoBear’s 10 covered travel insurance companies provide compensation for emergency trip termination. (Insert GoBear happy face.) The maximum provision for trip termination travel insurance can go as low as ₱20,000 (FPG Insurance’s Super Tipid plan) and as high as ₱150,000 (all three plans from HSBC* and three of STARR’s plans). 14 of the plans can give up to ₱50,000 in reimbursements for trip termination expenses. In just about every plan, the maximum coverage allotted for trip termination is the same as for trip cancellation.


*The coverage on trip cancellation in travel insurance plans from HSBC come with a “deductible” condition, stating that the first ₱500 of the expense related to trip cancellations should be shouldered by the policyholder. Bummer.


Need access to trip termination travel insurance coverage anywhere in the world? Compare travel insurance with GoBear Philippines and find out which plans provide this coverage.