India Plans Major Flight Cancellation Policy Change: Up to 80% Refund
The Indian government is developing a new air travel insurance policy that could provide passengers with up to 80% refunds on ticket fares even for last-minute cancellations due to emergencies.
Key Changes Proposed
- Up to 80% refund for last-minute cancellations
- Full refund possible with strong proof (discretionary)
- Built-in insurance component in lowest fare categories
- DGCA revising refund rules for passenger convenience
According to a Times of India report, aviation authorities are currently negotiating with Indian airlines to determine how airlines and insurance companies will share the costs, ensuring passengers don’t bear the financial burden.
“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 airline official stated.
The official emphasized that fear of losing money due to travel uncertainty prevents many people from booking flights, making this policy change crucial for boosting air travel confidence.
Current vs Proposed System
Currently, cancellations within three hours of take-off are treated as no-shows with zero refunds. The only protection available requires purchasing additional airline insurance at extra cost.
The Directorate General of Civil Aviation is simultaneously overhauling refund procedures that have become “a major pain for passengers.” New measures include:
- 21-day refund processing timeline
- 48-hour free cancellation/amendment (except fare differences)
- Applicable for domestic flights (5+ days before departure)
- Applicable for international flights (15+ days before departure)
