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After a lockdown of over 60 days, airlines have finally resumed operations in a staggered fashion but the uncertainty around air travel still continues. The constant back and forth between the aviation ministry and the states on flight operations caused chaos on the first day of resumption with hundreds of flights being cancelled.
In a bid to offer some respite to passengers booking flight tickets in the next few weeks, online travel agents (OTAs) such as Ixigo and HappyEasyGo have come up with special trip cancellation covers. Most of these covers come at the cost of a few hundred rupees but are they worth buying?
What’s on offer?
Just after the decision to restart flights was made, HappyEasyGo sent promotional SMSes offering “free insurance on your new reschedule". On a New Delhi to Mumbai flight on 28 May, the OTA is giving the option of free rescheduling if you pay ₹3,954 as against the basic price at ₹3,704. However, you will have to pay the difference in fares. Then there’s the free flight cancellation option which you get if you pay ₹4,104 but the convenience fee and free cancellation fee will not be refunded.
Ixigo too launched a new product, Ixigo Assured, by tying up with Liberty General Insurance. “Most OTAs used to sell free cancellation covers even earlier but most of them either discontinued it once covid-19 came around or increased the price substantially. We took the time during the lockdown to study the uncertainties that could come with this product," said Aloke Bajpai, CEO and co-founder, Ixigo.
Ixigo’s product is not for instances where the airline cancels the flight from its end and gives a full refund or credit shell. Bajpai said the product targets the anxiety passengers could face due to the ongoing situation. “The aim was to rejig our free cancellation cover and offer it at a price point which passengers could afford," said Bajpai.
However, there are a few terms and conditions. The trip cancellation cover can be claimed only if you cancel the ticket at least 24 hours prior to the scheduled departure date. In cases where the airline is grounded or not operating, the cover is not payable by the OTA, irrespective of the flight ticket cancellation.
"If you’re planning a trip in the next few days, having a safety net for your money, even if it’s only to a certain extent, is not a bad idea," said Rakesh Goyal, director, Probus Insurance, insurtech brokers.
Mint take
The mess around air travel may tempt you to buy one of these products to ensure you don’t lose your money but it’s important to read the fine print to understand what really will be covered. HappyEasyGo is giving the option to reschedule tickets without any charges. “The passengers need to understand that though they will not be paying rescheduling charges, they will have to pay for the difference in fares," said Akanskha, co-founder and managing director of Refundme.in, a company providing services for air passengers to claim compensation. For example, if you booked a flight for ₹5,000 and you want to reschedule it, you will not have to pay the additional rescheduling charges. But if the new flight ticket costs ₹7,000, you will have to pay ₹2,000 extra because of the difference in fares.
Under normal circumstances, OTAs offering free refund or rescheduling options see little utilization by passengers. According to Akanskha, only one out of 400 passengers opt for rescheduling or refunding options. “Right now because the situation is quite uncertain, the number of people opting for these products may be higher. With OTAs facing a cash crunch, how well they will service these claims is a question mark," said Akanskha.
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