What is 'Cancel For Any Reason' travel insurance? Why bother?
28 Feb 2025

Unforeseen circumstances can disrupt travel plans, and standard travel insurance doesn't always cover last-minute cancellations.

Enter Cancel for Any Reason (CFAR) travel insurance, a new trend providing Indian tourists with extra peace of mind.

This article breaks down the essentials of CFAR insurance, empowering travelers to navigate this emerging trend with confidence.

Know what CFAR covers
Coverage

Cancel for Any Reason travel insurance offers a wider safety net than standard policies.

While traditional insurance covers cancellations for specific reasons such as illness or natural disasters, CFAR gives you the flexibility to cancel your trip for any reason not covered by the standard policy.

However, it usually only covers 50-75% of your prepaid, non-refundable trip costs.

Understand the eligibility criteria
Eligibility

Everyone can't buy CFAR coverage. To be eligible, travelers typically need to purchase their policy within 14-21 days of making their first trip deposit.

And, you must insure 100% of your prepaid and non-refundable trip costs that are subject to cancellation penalties or restrictions.

If you don't meet these requirements, you won't be eligible for CFAR benefits.

Recognize the cost implications
Cost

CFAR coverage is not cheap; it's over and above the standard travel insurance policies.

* It typically adds 40-60% to the total premium.

* So, if your basic travel insurance is ₹10,000, CFAR would increase the total cost to around ₹14,000-₹16,000.

* It's important to consider this additional cost and balance it against the benefit of flexibility and peace of mind.

Timing is everything
Timing

Timing is key to CFAR benefits. Most policies stipulate that you must cancel at least two days prior to departure to be eligible for reimbursement.

If you miss this deadline, you forfeit the opportunity for a partial refund.

Armed with this understanding, Indian tourists can better evaluate coverage options against their needs and budget for both domestic and international travel.