With stricter visa rules and a large number of Indians facing rejections for popular destinations lately, a visa rejection rider in travel insurance can be a financial safety net. It will cover losses such as pre-booked flight tickets, hotels, and other non-refundable expenses.

In the first half of this financial year, Policybazaar, an online insurance aggregator, has seen the adoption of visa rejection riders in travel insurance plans growing 30% on-year. This coverage is especially valuable for destinations with stringent visa requirements, such as the United States and Schengen countries.

Visa rejection cover is not included in the base plan of most insurers. It is offered as a rider. However, Tata AIG has included the cover under the Titanium Plus plan.

Standard travel cover

Standard travel insurance plans typically cover medical emergencies, trip cancellations due to illness, flight delays, and baggage loss. A visa rejection cover is offered as an add-on. It reimburses non-refundable visa application fees, and in some policies, trip cancellation costs related to pre-booked flights and hotels. This ensures that travellers are financially protected even when the cancellation is due to factors beyond their control.

“This coverage has gained attention, especially with the high volume of Schengen and other visa applications and their corresponding rejection rates,” says Meet Kapadia, head, Travel Insurance, Policybazaar.

The timing of the purchase of the travel insurance is crucial. “The safest way to get a claim is to apply for the travel insurance before the individual applies for the visa,” says Chandrakant Said, vice president, Consumer Underwriting, TATA AIG General Insurance.

Premium for the rider

The individual will have to pay an additional premium for the rider, This ranges between Rs 2,600 to Rs 4,000 for the United States and between Rs 1,200 to Rs 2,000 for the United Kingdom for a cover of $2.5 lakh. “The cost is relatively modest compared to the potential financial loss from a visa rejection, making it a worthwhile investment for travellers,” says Sarita Joshi, head, Health and Life Insurance, Probus.

Exclusions to watch out for

A visa cancellation rider does not cover cancellations due to incomplete or fraudulent visa applications or if the traveller voluntarily withdraws her visa application. 

It is important for travellers to ensure that their applications are complete and correct to avoid any potential issues. The rider does not cover failure to meet the destination country’s basic eligibility criteria and rejections due to criminal records or insufficient funds.

Before applying for a visa, the customer must review the policy carefully to confirm coverage, understand exclusions, and prepare the necessary documentation. Being aware of these exclusions will ensure that she avoids unnecessary losses and unpleasant surprises if the visa is denied.

To seek broader protection, it is better to opt for a special Cancel For Any Reason (CFAR) rider. The cover reimburse cancellation charges or flight tickets when a trip has to be canceled due to reasons that are obvious but not typically covered under standard travel insurance, such as a last-minute important event. However, it is available only under group travel insurance policies and not for individual travel plans.

How to file for a claim when visa is rejected

To file a claim, the individual must notify her insurer or broker promptly about the visa rejection. She will need to submit necessary documents including an official visa rejection letter from the embassy, proof of visa application and appointment, payment receipts for visa, flight, and hotel bookings and other supporting documents.

Claim submission is usually digital, with processing and settlement time about 15–20 working days, provided complete and accurate documentation is submitted.