[Travel cover is it truth?] If an overseas concert or major event is cancelled, does travel insurance always pay out?

Travelling abroad to watch a concert, music festival or a major sporting event such as F1 can be expensive once you add up flights, hotel accommodation and event tickets. If the event is suddenly cancelled, does having travel insurance mean you can simply claim from the insurer?

The answer is: not necessarily.

The “trip cancellation” cover under travel insurance may indeed reimburse prepaid and non-refundable flight, hotel and event ticket expenses. However, whether a claim is payable depends not only on whether the event ticket is a covered expense, but also on the reason for the cancellation, whether your trip was affected, and the specific terms and conditions set out in the individual policy.

10Life will take a closer look this time. 

• Is an event cancellation covered?: If the organiser or performer cancels the event, this does not usually mean that travel insurance will necessarily pay out
• What reasons are eligible for a claim?: In general, compensation is only possible if the insured person is unable to attend due to a covered event specified in the policy, such as illness, injury, quarantine, or a natural disaster
• Are event tickets included?: Not every travel insurance policy clearly covers concert, sports event, museum, or theme park tickets
• Which non-refundable expenses are compensated?: Some products only cover flights and hotels, while others also include event tickets; you should read the policy definitions carefully
• Are there any time limits for taking out cover or any excess?: Some trip cancellation or "cancel for any reason" cover requires the policy to be purchased within a specified number of days after booking, and an excess may also apply 

Many people travel overseas specifically to attend a concert, music festival or other large-scale event, assuming that once they have bought travel insurance, they can claim from the insurer if the event is cancelled.

In fact, travel insurance covers different benefits such as medical expenses, trip delay, baggage loss and trip cancellation. However, it will generally not guarantee that the event itself will go ahead as scheduled. Whether travel insurance will pay out depends on the reason the traveller is unable to depart or attend the event, and whether that reason falls within the insured events specified in the policy.

Scenario 1: Sudden illness prevents departure

If the insured person suddenly falls ill before departure and a doctor certifies that they are unfit to travel, and the illness is one of the insured reasons set out in the policy, prepaid and non-refundable flight, hotel and event ticket expenses may be eligible for compensation.

In addition, if typhoons or other adverse weather, natural disasters or other insured events prevent the traveller from departing, resulting in the entire trip needing to be cancelled, compensation may also be available.

However, please note that whether event ticket costs are covered depends on whether the individual policy includes the relevant tickets within its coverage.  

Scenario 2: The singer or organiser cancels the performance 

If the event is cancelled due to the organiser, performers, safety considerations or venue arrangements, but flights and hotels can still be used as normal, even if the traveller subsequently decides to cancel the entire trip, this will generally not fall under “trip cancellation” cover, because the reason for cancelling the trip may not be an insured event specified in the policy.

Take Taylor Swift’s originally scheduled The Eras Tour concert in Vienna in 2024 as an example. The organiser cancelled all shows on safety grounds due to a terrorist attack threat.

However, the cancellation of the concert does not mean the traveller’s flights and hotel are affected at the same time. If the traveller can still proceed to Vienna as normal but chooses to abandon the trip because the concert has been cancelled, losses relating to flights and hotels will generally not meet the requirements of traditional “trip cancellation” cover. Refunds for event tickets should first be handled in accordance with the arrangements of the organiser or ticketing platform.

Similarly, if the entire trip is not affected and the traveller can still depart as planned, but wishes to claim solely for the cost of event tickets, this will generally also not be covered.  

Even if a traveller is unable to depart due to a covered event, it does not necessarily mean that concert or major event tickets can be claimed.

Some travel insurance policies clearly include concert, musical, sports event, museum or theme park tickets under “trip cancellation” cover; other products only specify non-refundable transport and accommodation expenses, without clearly mentioning event tickets.

Therefore, before taking out cover, in addition to noting the insured reasons for trip cancellation, you should also check whether the policy includes event tickets as covered expenses, and whether there is a separate claim limit. 

Some travel insurance policies include “cancel trip for any reason” cover. Compared with traditional “trip cancellation” cover, which only covers specified events, this type of cover has a broader scope. However, it does not mean that claims can be made in every situation, nor does it mean that all losses will be fully reimbursed.

This type of cover usually has specified application deadlines, claim limits, excesses and exclusions. Whether event tickets are covered expenses also depends on the terms of the individual policy.

Therefore, “cancel trip for any reason” should not be interpreted as meaning that if a concert or major event is cancelled, ticket, flight and hotel costs will automatically be fully claimable. 

Some travel insurance policies on the market provide specific cover for concert, sports event or other event tickets. However, purchasing travel insurance does not mean you will always be compensated in every circumstance. The covered reasons, ticket cover, compensation limits, excesses and exclusions of different travel insurance plans may vary, so you should compare them carefully before purchase.

If you do not want to review the policy terms of each insurer one by one, you can visit the 10Life Travel Insurance page, where you can compare the policy features and premiums of different products at a glance. It also includes actuary ratings to help you quickly choose the most suitable travel insurance. 

Further reading:
【Is travel insurance really that good?】If your camera, phone or laptop is stolen, will travel insurance reimburse the full original value?
【Is travel insurance really that good?】Can you still make a claim if you fall ill or get injured on your trip and only see a doctor after returning to Hong Kong?
 

This English version of this article has been generated by machine translation powered by AI. It is provided solely for reference purposes. In the event of any discrepancy or inconsistency between this translation and the original Chinese version, the Chinese version shall prevail.