Flight cancelled? 5 rules and little-known options to recover your ticket costs

1. DGCA passenger rights: Full refunds and strict timelines

Under the Ministry of Civil Aviation’s 2019 “Fly Informed, Reach Relaxed” circular, if an airline cancels your flight, you are entitled to a full refund. Airlines cannot charge extra fees to process this.

If the airline informs you at least two weeks before departure:

• You must be offered a full refund or an alternate flight of your choice.

If the cancellation is announced less than two weeks before departure:

• You must still receive a full refund or an alternate flight.

• Compensation may apply depending on notice period and the flight’s block time.

• For tickets paid in cash, the refund must be made immediately.

• For tickets paid by credit card, the refund must reflect within seven days.

• For bookings made through an agent or OTA, the refund must reach you within twenty-one working days.

• Refunds must include taxes such as PSF, ADF or UDF, and GST.

If a domestic flight is delayed by six hours or more, you may choose:

• A full refund, or

• A different flight at no additional charge.

2. Credit cards: Faster refunds and built-in travel protection

If you use a mid-range or premium credit card to book your ticket, you often receive:

• Faster refunds, because DGCA rules require reversal within seven days

• Complimentary travel insurance benefits, which may include:

• Trip cancellation or interruption

• Flight delays

• Lost or delayed baggage

Always check your card’s benefits guide for the exact protections.

3. Online Travel Agency (OTA) protections: Flexible policies and zero-cancellation add-ons

If you booked through platforms such as MakeMyTrip, Yatra, or EaseMyTrip:

• The airline issues the refund, and

• The OTA must pass it on to you within twenty-one working days.

• Many OTAs also offer optional zero-cancellation or flexible-cancellation add-ons during booking, which can save the entire ticket cost during disruptions.

4. Travel Insurance

A dedicated travel insurance policy, whether purchased directly, through an OTA, or included with some credit cards, covers a wide range of risks, such as:

• Trip cancellation or interruption

-Flight delays

• Lost or delayed baggage

• If your trip never begins, most insurers refund the premium after deducting administrative fees, as long as you provide proof.

• If your trip ends early, refunds depend entirely on the policy wording, so check the exclusions and conditions carefully.

5. Airlines' travel insurance

Some airlines offer travel insurance (or travel assistance) packages you can buy when you book your flight.

Air India offers optional travel insurance coverage you can purchase at the time of booking, for both domestic and international travel.

SpiceJet offers what it calls an “International Travel Assistance Plan,” which is available during the booking process on its website.

Even budget airlines such as IndiGo appear to have optional insurance/assistance plans for certain travellers when booking international flights.

Insurance via airlines tends to be optional, not automatic. That means you must actively choose to buy it while booking.

Dos and don’ts when buying travel insurance

• Plan your travel insurance early, just like you plan visas or flight bookings.

• Complete the proposal form accurately, including any required medical tests.

• Make sure the policy covers your entire travel period.

• Extend your policy before it expires, if your trip gets extended.

• Read the entire policy document and keep claims contact numbers handy.

• If you return early, check whether you are eligible for a partial refund.

• Do not postpone buying travel insurance until the last minute.

• Do not rely only on the cover recommended by a travel agent—compare your options.

• Do not choose a policy only because it is the cheapest; it may leave out important coverage.

"IndiGo has so far processed refunds totalling Rs 610 crore. No additional fees are permitted for rescheduling travel impacted by cancellations. Dedicated support cells have been created to proactively assist passengers so that refund and rebooking issues are resolved without delay or inconvenience," the aviation ministry said in a release.

On Saturday, the government had directed the airline to complete the ticket refund process for the cancelled flights by Sunday evening, and ensure baggage separated from travellers are delivered in the next two days.