Can travel insurance cover trip cancellation for any reason? Travel delay and damaged luggage claims guide

You’ve booked your flights, hotel and concert tickets, only to hear reports of a possible earthquake at your destination. Or perhaps your annual leave request is unexpectedly rejected, forcing you to cancel your trip. Even if your journey begins smoothly, you could still face a travel delay, flight cancellation or discover your luggage has been damaged upon arriving home.

In these situations, can you claim from your travel insurance? The answer depends on your travel insurance coverage, whether the incident falls within the policy terms, and when the policy was taken out relative to the trip booking and cancellation dates.

This guide explores three common scenarios and explains how travel insurance delay compensation, trip cancellation claims and travel insurance luggage damage claims typically work. We will also introduce the MSIG Easy Lounge and door-to-door luggage repair services available under MSIG Travel Insurance.

Imagine you are flying from Hong Kong to Tokyo. After arriving at the airport, you receive a notification that your flight has been delayed due to severe weather or a mechanical issue. In this situation, it is important to distinguish between:

• Travel delay compensation under the travel insurance policy
• MSIG Easy Lounge service

Although both relate to flight delays, they are different benefits and operate under different eligibility requirements.

Under MSIG iTravel Go (Single Trip) Insurance, you may be eligible for travel delay compensation if your scheduled public transport is delayed due to mechanical or electrical breakdown, industrial action, strikes or labour disputes, riots, hijacking, adverse weather or natural disasters, providing the delay reaches the specified waiting period stated in the policy.

Under the current plan, travel insurance delay compensation is calculated for every five-hour delay period, with benefits of up to HK$300 per five hours and a maximum benefit of HK$3,000. Coverage may also extend to flight diversion, flight overbooking and missed travel connections. Each benefit has its own eligibility criteria and compensation limits.

It is important to note that not all delays qualify. For example, delays caused solely by air traffic control restrictions may not be covered. However, if the air traffic control disruption is directly or indirectly caused by severe weather or a natural disaster that was not known at the time you took out the policy, coverage may still apply subject to policy terms.

Even if the reason for your delay does not qualify for travel insurance delay compensation, you may still be able to use the MSIG Easy Lounge service.

To qualify, travellers must register their flight at least 24 hours before the scheduled departure time. When the flight monitoring system confirms a delay of 60 minutes or more, a digital airport lounge access voucher will be emailed to you automatically, and a notification SMS will be sent to the registered traveller.

MSIG Easy Lounge provides access to more than 1,700 airport lounges worldwide. The insured traveller and up to five travel companions can enjoy complimentary food and drinks, Wi-Fi access and device charging stations. Unlike traditional travel insurance delay compensation, this service is determined solely by the length of the delay, regardless of the reason of the delay,  but still subject to registered flight, flight monitoring and relevant lounge usage terms.

Flight delay benefits comparison:

To support a travel delay claim, obtain written confirmation from the airline or carrier showing:

• Cause of delay or cancellation
• Original and actual departure times
• Flight number
• Alternative flight arrangements

You should also retain your boarding pass, e-tickets, original itinerary, and hotel and transportation receipts for additional expenses. A boarding pass alone is usually insufficient. Insurers generally require official confirmation from the airline indicating both the reason for and duration of the delay.

Most travel insurance policies only cover trip cancellation resulting from unexpected events specifically listed in the policy. Common covered reasons include:

• Death, serious injury or serious illness of the Insured Person, travel companion or immediate family member
• Jury service or court witness summons
• Mandatory quarantine
• Serious damage to the Insured’s home due to fire, flood, typhoon, earthquake or landslide
• Severe weather, natural disasters or civil unrest occurring at the destination within seven days before departure
• Public transport delayed for at least 10 hours due to specified reasons
• Attendance at a scheduled school interview or public examination involving an Insured child under 18 years old

However, cancelling simply because of a change of mind, an unconfirmed earthquake rumour, or leave rejection by an employer would generally not qualify under standard travel insurance trip cancellation coverage.

MSIG iTravel Go (Single Trip) Plan A offers a “Cancellation of journey for any reason” benefit. If the Insured cancels the trip before the insurance period begins and suffers a loss of prepaid travel or accommodation expenses that cannot be recovered elsewhere, compensation may be available according to the policy terms.

Benefits are generally limited to 50% of eligible losses or HK$25,000 maximum benefit, whichever is lower. To qualify, the travel insurance policy must be taken out within seven days of the first payment or booking for the trip.

Situations that may potentially qualify include:

• Concerns about a possible earthquake at the destination
• Simply deciding not to travel
• Leave application not approved
• Unexpected personal or family commitments
• Expired passport preventing travel
• Relationship breakdown

However, “for any reason” does not necessarily mean full reimbursement. Eligible expenses must:

• Have been paid or legally payable
• Remain unused
• Be non-refundable from airlines, hotels, travel agents, credit card providers or other sources
• Fall within policy limits
• Meet all applicable policy requirements

When filing a travel insurance trip cancellation claim, keep:

• Air ticket receipts, hotel booking confirmation, tour package invoices and event or attraction tickets
• Cancellation confirmation from airlines, hotels or travel agents
• Documents showing refundable and non-refundable amounts
• Relevant emails, SMS messages and correspondence
• Medical certificates and reports where illness is involved
• Other documents as required by Insurer

MSIG also requires claimants to provide the travel deposit receipt, along with a cancellation confirmation and documentation confirming any non-refundable expenses issued by the airline, travel agent or hotel. Promptly notify relevant suppliers once you decide to cancel the trip to minimise losses and support your claim.

Finding cracks, broken wheels or damaged handles on your suitcase at the baggage carousel can be frustrating. If your luggage is damaged, do not leave the airport immediately. Instead, you should report the damage to the airline’s baggage service counter, obtain a baggage damage report and take photographs of the damaged luggage from multiple angles.

For a travel insurance damaged luggage claim, you may need:

• Airline, hotel or police reports
• Photographs showing the extent of the damage
• Original purchase receipts
• Repair quotations or invoices
• Proof that the luggage is beyond repair
• Details of any compensation already received from the airline

Do not dispose of the damaged luggage until the claim has been assessed.

Not necessarily. Most travel insurance luggage damage claims are assessed according to the principle of indemnity, meaning compensation reflects the actual financial loss suffered.

Compensation may be affected by depreciation, age of the luggage, policy limits per item and compensation already received from the airline. Normal wear and tear, pre-existing damage, cosmetic scratches or minor defects that do not affect use may not be covered.

To make travel insurance luggage repair more convenient, MSIG offers complimentary door-to-door luggage repair collection and delivery services.

Process:

1. Take photos of the damage and retain supporting documents
2. Contact the MSIG luggage repair specialist after returning to Hong Kong
3. The repair company will pick up your luggage from your address
4. The repaired luggage will be delivered back to your designated Hong Kong address

The service is only available in Hong Kong. Service hours are Monday to Saturday, 9am to 6pm (excluding Sundays and public holidays).

Contact information:

• Telephone: +852 2410 8022
• WhatsApp: +852 6645 0349

Please note the following after you take out travel insurance:

1. Known events before purchasing insurance

   Events already known at the time of buying insurance, such as documented civil unrest, earthquakes, typhoon or other causes that may be treated as known risks and excluded from coverage.

2. Commercial decisions by airlines

   Flight cancellations caused primarily by operational or commercial reasons, such as fuel management, crew scheduling or route consolidation, may not qualify for standard travel insurance benefits. Travellers should first approach the airline to request rebooking, a refund, or the provision of accommodation and meal arrangements, where applicable.

3. War-related events

   Losses arising directly or indirectly from war are commonly excluded under travel insurance policies. A travel alert does not automatically entitle travellers to compensation for all related losses. Coverage will depend on the underlying cause of the alert and the applicable policy terms and conditions.

4. Expenses recoverable elsewhere

   Costs already refunded by airlines, hotels, travel agents or credit card providers cannot generally be claimed again under travel insurance.

5. Delay duration below the policy threshold

   A 60-minute delay may qualify for the MSIG Easy Lounge service but may not satisfy the minimum waiting period required for travel insurance delay compensation of 5 hours.

1. Take out travel insurance early

   Purchase your travel insurance as soon as flights, accommodation, or travel arrangements are booked. This helps maximise eligibility for trip cancellation coverage. If you wish to enjoy “cancellation for any reason” coverage, ensure the policy is taken out within seven days of the first travel payment or booking.

2. Register for MSIG Easy Lounge in advance

   Flight registration must be completed at least 24 hours before departure. Waiting until a delay is announced may mean you miss the opportunity to receive an airport lounge access voucher.

3. Store policy and claims information on your phone

   Before travelling, save:

   •    Policy number and insurance documents
   •    24-hour emergency assistance hotline
   •    E-tickets and boarding passes
   •    Hotel, transport and activity bookings
   •    Photos of luggage and valuables
   •    MSIG EASY Claims information

Travel insurance does not only provide financial reimbursement after an incident occurs. Through benefits such as cancellation for any reason coverage, travel insurance delay compensation, MSIG Easy Lounge service, and door-to-door luggage repair services, MSIG helps travellers manage uncertainties before departure, during transit and after returning home.

Nevertheless, every claim is assessed based on the cause of loss, policy insured date, plan selected, supporting documentation, coverage limits and exclusions. Before taking out travel insurance, review the policy wording carefully and choose a plan that matches your destination, prepaid travel expenses and personal protection needs.