What existing domestic travel insurance typically covers?
Akash Parwal, CEO of Square Insurance, said operational factors account for a significant share of India’s flight disruptions.
“In India, around 30–35% of flight disruptions each year stem from operational issues such as technical faults, crew shortages, or airline strikes. Events like the recent IndiGo cancellations show how travellers can be stranded quickly without support,” he said.
According to Parwal, most domestic travel insurance policies do provide compensation for long delays or cancellations triggered by airline-initiated disruptions.
But this protection kicks in only under specific conditions.
“Every policy has conditions, such as a minimum delay of 3–6 hours before coverage applies, or exclusions if the airline has already offered an alternative arrangement. Travellers are advised to review their policy wording carefully to understand these nuances and ensure they are adequately protected,” he added.
Industry platforms note that large-scale operational disruption is rarely black and white.
CoverSure, for instance, said that when the disruption stems from an airline’s internal issues, the cancellation itself may not always be covered, even though connected losses usually are.
“When a disruption stems from an airline’s internal or operational issues, as seen in the IndiGo case, most travel insurance plans don’t cover the cancellation itself. What they do cover are the secondary impacts, like baggage delays, missed connections, and trip delays,” Saurabh Vijayvergia, Founder & CEO, CoverSure, said.
Typical exclusions passengers must watch for
Policies tend to specify what does not qualify for compensation.
Vijayvergia said insurers exclude “delays shorter than the minimum wait time, weather or air-traffic issues, and situations outside airline control. Voluntary flight changes or accepting vouchers can also weaken a claim”.
It added that insurers “avoid double compensation, so if the airline has already covered the loss, the policy may not pay further”.
Why documentation decides whether a claim succeeds
Missing paperwork remains one of the biggest reasons for claim rejection.
Parwal noted that “nearly 40% of travel insurance claims were delayed or rejected due to missing documentation, even when the event was covered”.
“To ensure claims are honored, passengers should retain all relevant documentation, including airline communications (emails, SMS), boarding passes, delay certificates, and receipts for hotel, meals, or transport expenses,” he said.
Each piece, he added, serves a specific purpose: establishing the disruption, proving expenses, and helping the insurer verify the claim.
Vijayvergia, said clear records “smoothen the claim process and prevent unnecessary back-and-forth with the insurer”.
“Travellers should keep their boarding pass, ticket copy, and every written update from the airline. A delay or cancellation certificate is often essential. Receipts for meals, hotel stays, transport, or rebooking help establish actual loss. In fact, an SMS/mail that had the updates regarding the delay or cancellation can be used for claims,” he said.
Meet Kapadia, Head of Travel Insurance at Policybazaar.com, described how payouts work in such moments of large-scale disruption.
“The recent spike in flight cancellation complaints, especially with large carriers like IndiGo, shows how unpredictable air travel can be for passengers. In such moments, travel insurance offers fixed pay outs if the traveller is stranded for a specified number of hours (6–12 hours). They also reimburse the cost if the flight is cancelled and traveller has to book a new flight, or arrange hotel stay, cover meals, essentials, and other emergency purchases,” Kapadia said.
He added that insurers also offer 24×7 assistance, which helps passengers “manage disruption with less stress in unfamiliar locations”.
Why credit cards may already offer hidden protection
Travel insurance is not always limited to standalone policies. Many passengers may already have coverage built into their credit cards — often without realising it.
CoverSure said “many travellers assume a standalone travel policy is the only safety net, but most credit cards already carry built-in travel protection”.
“These embedded benefits often cover delays, missed connections, baggage issues and accidental emergencies, yet they go unused simply because people don’t know they exist,” it said.
The platform added that benefits on cards require “no extra payment or paperwork”, and can provide immediate support during disruptions. A standalone policy, it said, becomes relevant only if additional protection is needed.
