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80 pc refund after last-minute flight cancellation? India mulls new ticketing policy

'The uncertainty of being able to travel and then the fear of losing money or facing trouble in getting the refund is a big factor in many people avoiding booking flights,' an official said

Representative image | Reuters

Ever had to cancel or miss a flight because of urgent reasons, after which you sadly see the money you spent on a ticket go down the drain?

That may not be the case soon, as the Indian government is considering rolling out an in-built air travel insurance component over the next few months that could get you up to 80 per cent of your ticket fare refunded, despite last-minute exigency cancellations.

In certain cases—and with strong proof—you could even get a full refund, but this is purely discretionary, a Times of India report said.

In that regard, the aviation secretary is currently in talks with various Indian carriers to figure out the best way for airlines and insurance companies to split and bear the costs amongst themselves, so that passengers would not have to.

“We are exploring whether an insurance element can be added in the lowest fare (category) so that passengers get some refund. The details are being worked out,” a senior official of a leading airline said.

"The uncertainty of being able to travel and then the fear of losing money or facing trouble in getting the refund is a big factor in many people avoiding booking flights," the official added.

As of now, if you were to cancel a flight within three hours of the take-off time, it is treated as a no-show, for which no refund is given. The only hope of a refund lies in paying extra money—on top of the ticket fee—for airline insurance.

The Directorate General of Civil Aviation (DGCA) is also in the process of amending its current refund rules to make them more passenger-friendly, as the process has become a major pain for passengers.

These new changes include 21-day refunds and 48-hour ticket cancellation/amendment at no extra charge (except fare difference) if their domestic flight departure is at least five days away or their international flight departure is at least 15 days away.