With the recent tightening of the U.S. H1B visa policies making headlines, the issue of visa rejection has once again become a major concern for travelers. But it’s not just working professionals who are affected — Indian tourists planning international trips are also facing last-minute cancellations due to visa denials, especially in Europe’s Schengen countries where travel insurance is mandatory.
So the big question is: Does travel insurance cover visa rejection?
Standard Travel Insurance Usually Doesn’t Cover Visa Rejection
In most cases, regular travel insurance policies do not cover expenses related to visa rejection, such as cancelled flights or hotel bookings. However, some insurance companies now offer an add-on option called a “Visa Rejection Rider” for an additional premium, which provides coverage specifically for such situations.
According to experts, basic international travel insurance policies typically do not include trip cancellations due to visa denial, though some high-end policies may offer limited protection.
When Does Travel Insurance Cover Trip Cancellations?
Travel insurance generally covers trip cancellations only for specific reasons clearly mentioned in the policy. These can include:
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Sudden illness or hospitalization
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Natural disasters
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Passport theft
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Civil unrest, riots, or strikes
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Government-imposed travel bans
Visa rejections or immigration-related issues are usually not part of this list, making it essential for travelers to understand what their policy actually covers.
What Is a Visa Rejection Rider and How Much Does It Cost?
Travelers, particularly those going to Europe, are increasingly opting for Visa Rejection Cover Riders because Schengen visa rules require mandatory travel insurance. This rider usually costs between ₹2,654 to ₹4,091 for a coverage amount of up to $250,000.
The rider typically reimburses:
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Visa application fee (up to ₹15,000)
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Pre-booked flight and hotel cancellation charges
Terms & Conditions You Should Know
Like all insurance plans, this rider also comes with specific terms and conditions. One of the most important things to remember is that claims will not be accepted if the visa is rejected due to your own mistake — such as missing documents like ITR, bank statements, or incorrect application submissions.
To be eligible for the claim:
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You must submit all required documents properly and within the stipulated timeframe.
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The rejection must not be due to any negligence or misrepresentation on your part.
Final Takeaway
If you’re planning to travel abroad — especially to countries with strict visa requirements — it’s worth considering a Visa Rejection Cover Rider along with your travel insurance. While it adds a small extra cost, it can save you from significant financial loss in case your visa application is denied.
Always read the fine print, understand the inclusions and exclusions, and choose a policy that aligns with your travel needs.
