New Delhi: Indian passengers are in for a big relief as the government is soon launching a new ‘Travel Insurance’ plan. Under this plan, passengers who cancel their flights at the last minute can get up to 80% refund on their ticket price. This plan is expected to be implemented in just 2-3 months.
Current Rules:
According to the current regulations, if a passenger cancels their ticket a few hours before the flight, it is considered a ‘no-show’, and airlines usually do not provide refunds. Only in cases of medical emergencies or delicate situations do airlines refund the money. Currently, the decision lies entirely on the airline’s policies.
Government’s New Scheme:
Sources reveal that discussions are ongoing with airlines to implement this plan. The most crucial feature is that passengers will not have to pay any additional costs for this scheme. Airlines and insurance companies will share the payment of the premium. Currently, if a passenger wants insurance, they have to purchase it as an add-on option, but after the new rules come into effect, this feature can be directly included in the ticket.
Insurance Companies’ Considerations:
A major airline has already initiated discussions with insurance companies for a cooperative arrangement. A senior official stated, ‘We are evaluating if this insurance can be included in the cheapest tickets, so that passengers can get some money back. Work is underway, and further details will be provided soon.’
Why are these Changes Necessary?
These steps are being taken to ensure the safety of passengers and alleviate financial concerns. An official explained, ‘Emergencies often arise in families, and passengers who are unable to travel should not be penalized. If a small premium of 50 rupees is added to each ticket, passengers can get up to 80% refund if they cancel up to four hours before the flight.’
Future of Online Travel Agencies and Insurance Companies:
Online travel agencies already present insurance options during ticket booking. Officials state that they are working with insurance companies to balance risks and benefits. An official said, ‘If only 2-3 passengers out of 200-300 cancel their flights due to any reason, it works better for insurance companies.’






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