Many trip cancellation and interruption policies also provide coverage for lost, damaged, delayed or stolen bags...And this is especially necessary if you're flying overseas and checking bags. But if you're just flying between short distant cities and think you have no need for a larger trip cancellation and interruption policy, you may think you are simply covered by the airlines' published limits of liability when it comes to lost, stolen, delayed or damaged bags. Indeed, at least on the surface, it seems like you're covered.
But there's a little known insurance provision you've probably never heard about. And the airlines aren't exactly rushing to tell you about it. In fact, not one single airline even advertises this provision, even though it's available to every single passenger. It's something called "excess valuation."
Non-Refundable Insurance
Some policies also offer straight coverage if you buy the non-refundable airline ticket and then can't use it and don't want to be hit with the minimum change fee. An expensive premium, but still worth it if you really think you might have to change your trip once you purchase your ticket.Terrorism Cover
Read the policy wording carefully. If war breaks out, or there is a terrorist act, are there clauses that essentially void your policy? Very few policies cover trip cancellation for reasons of any kind. Most policies now include "force majeure" clauses. Many policies only cover you for your trip if an act of terrorism occurs in the specific country you're traveling to or from. And they set limits on how close an attack has to be to your destination before it goes into effect. You generally must buy the policy before violence erupts to be covered. But almost all policies will not cover any losses caused by war or threat of war.
Final Decision - To buy or not to buy?
Compare the cost of the trip versus the cost of the policy. Look for a policy with a travel insurer that is independent from your tour operator and is licensed by the governing body, Insurance Board of Sri Lanka. Many tour operators offer insurance, often at lower premiums than those charged by outside insurers. But if the tour company goes out of business, there may not be money to cover your claim
