Jason Veitch, Head of Travel, Accident and Health at Santam Travel Insurance

Nothing in life is certain, and unfortunately, a lot can go wrong in the lead-up to an important holiday or trip. Whether it's a sudden illness, a family emergency, or severe weather, cancelling a trip can be stressful, especially if you've invested in non-refundable bookings.

Ensuring you have the right travel insurance cover in place will give you peace of mind when life’s unexpected events disrupt your travel plans. Trip cancellation insurance is a financial safety net that protects your prepaid, non-refundable travel costs if you’re forced to cancel your trip because of unforeseen circumstances.

How does it work?

Picture this. After months of planning, you’ve booked a R120 000 family holiday to Mauritius, including non-refundable flights, accommodation, and excursions. A week before departure, your spouse is hospitalised unexpectedly, and the doctors say recovery will be at least four weeks before any travel can be undertaken. There’s nothing to be done but cancel.

With trip cancellation cover in place, while disappointing, you could cancel your trip and submit a claim for reimbursement of the non-refundable portion, helping you avoid major financial loss.

What costs are covered under trip cancellation insurance?

Trip cancellation insurance reimburses your non‑refundable costs, or expenses you’ve already paid for and cannot recover from airlines, hotels, or travel providers. These typically include non‑refundable flight tickets, prepaid accommodation, tour packages, safaris, or cruises, pre-booked activities or excursions, and any event or attraction tickets you’ve bought in advance.

When does, and doesn’t, trip cancellation insurance apply?

This type of cover applies if an eligible, documented event prevents you from travelling before your scheduled departure. The event must be unforeseen and outside your control. Common qualifying situations include medical emergencies (for you or a travel companion), family bereavement, major travel disruptions (like severe weather or natural disasters), job loss or theft of travel documents.

You will usually need supporting documentation, such as a medical report, proof of cancellation, or airline report to support your claim.

Having to cancel or cut your travel short during the trip would require trip disruption insurance and wouldn’t typically be covered under trip cancellation insurance.

While trip cancellation insurance offers valuable protection, it doesn’t cover every reason for cancelling. To avoid unpleasant financial surprises, it’s important to understand the common exclusions:

• Voluntary cancellations or change of mind
• Lack of proper travel documents, like a missing or rejected visa
• Financial issues, including not being able to afford the trip
• Known events that occurred before you purchased the policy
• Travel bans, advisories, or restrictions already in place before booking
• Pre-existing medical conditions

War or warlike operations

It is imperative to always check your policy wording for full details to ensure you are aware of all the important information.

When should you consider trip cancellation insurance?

This type of cover is most valuable when you’ve invested heavily in non‑refundable bookings.

It is also useful if you’re travelling with children, elderly family members, anyone with medical concerns, or your travel is tied to specific dates, like weddings, conferences, or group tours.

The best time to buy trip cancellation insurance is immediately after booking. This ensures you qualify for full benefits and that you aren’t caught out by time-sensitive restrictions.

For travellers looking to add an even greater level of cancellation cover to their trip – Cancel For Any Reason (CFAR) or Unspecified Event cancellation insurance is a worthwhile investment. This type of cover offers protection for almost any cancellation reason and can be a smart choice if your travel plans are uncertain or your upfront costs are high. It offers added peace of mind for those who value flexibility, especially when investing in high-cost, non-refundable travel.  This add-on must usually be purchased within 2 – 3 days of making your first trip payment or deposit at the same time as your base travel insurance policy.

If you can’t afford to lose what you’ve paid for your trip, you can’t afford to travel without trip cancellation insurance

By choosing the right policy and purchasing it early, you can avoid significant financial loss and focus on what matters most—your wellbeing and the people around you.