Avoid Losing Non-Refundable Travel Costs: What Visa Insurance Covers

Visa rejections can lead to financial losses, especially if you have already booked flights and hotels and incurred other expenses that are nonrefundable. Recent reports suggest that Schengen visa rejections cost Indian travelers Rs 136 crore in fees. However, standard travel insurance does not cover visa rejection.

Another study has suggested that the Schengen rejection rate for Indians is running at 15 per cent, aggravated by appointment backlogs that can stretch to six months at certain consulates. Losses per individual can range from anything between Rs 50,000 to Rs 2 lakh per trip. For a family, it will be substantially more.

What Visa Rejection Add-on Covers 

However, visa rejection is not typically covered under standard travel insurance plans.  “Awareness around this add-on has grown significantly recently, given the high volume of visa application rejections and the financial losses being incurred by travelers,” says Meet Kapadia, head of travel insurance at Policybazaar.

Such add-ons cover the ticket cost and/or nonrefundable accommodation costs if the trip is cancelled due to visa rejection prior to the scheduled departure date from India, if your visa is rejected without any shortcoming, fault, or negligence by the insured person. University deposit costs are not covered under the benefit.

“Required documents typically include submission of a visa denial letter, policy copy purchased prior to application for the visa, and receipts/cost breakdown of accommodation/travel (nonrefundable portion),” says Chandrakant Said, vice president of consumer underwriting, TATA AIG General Insurance.

Note The Exclusions 

Any rejections for immigrant or employment visas are excluded. Any visa application rejected prior to the date of receipt of the premium is excluded. Visa rejections resulting from errors by the travel agent, aggregator, or visa-facilitating company are excluded. Rejections due to moral turpitude or the submission of false or forged documents are excluded.

Any visa rejection caused by missing a pre-scheduled appointment is excluded. Rejections arising from past or current criminal actions, litigations, or legal cases against the insured person are excluded. Visa rejections due to passport invalidity are also excluded.