If you cancel a portion of your trip or your entire trip for a covered reason, you wonâ€™t encounter this situation. Youâ€™ll simply make your claim and receive a refund as long as the cancellation was covered by your policy rules.
If a portion of your trip or your entire trip is cancelled by a travel supplier, say a tour operator, an airline, a cruise line, for example, then itâ€™s their responsibility to provide compensation to you. In the case of most travel suppliers – airlines and cruise lines in particular – this compensation is in the form of future travel vouchers and sometimes this doesnâ€™t appeal to the traveler who may feel they have a right to receive cash reimbursement instead. Unfortunately, if a travel supplierâ€™s compensation doesnâ€™t appeal to you, youâ€™ll have to take it up with the travel supplier because theyâ€™re the ones responsible in this situation.
You can think about it this way: if a travel insurance company provided reimbursement for cancellations where the insured also received future travel compensation from the travel supplier, then the insured would essentially be doubly compensated.
Similarly, you wouldnâ€™t expect to be doubly compensated for a car accident by both your own automobile insurance and the other participantâ€™s automobile insurance. As long as the car is repaired or replaced, thatâ€™s all that is expected. Travel insurance companies, just like any other insurance provider, have the right to limit their liability and this is one of the ways they do that.