Last-Minute Flight Cancellation? New Rules May Allow 80% Refund at No Extra Cost

In a major relief for flyers, the government is preparing to overhaul India flight refund rules , bringing a more passenger-friendly system into place within the next two to three months. This development aims to ease the biggest worry of travellers losing the entire ticket amount if they miss a flight due to an unexpected emergency. The revamped airline cancellation policy India is expected to bring more fairness and security to last-minute travel disruptions.

Under the current system, anyone cancelling a flight less than three hours before departure is marked as a no-show, meaning the full fare is deducted. But the new proposal completely changes this. Soon, passengers will be able to receive refunds of up to 80% of their ticket value, even for a last-minute flight cancellation , and this protection will come at no additional cost. This marks a major shift in India flight refund rules, closing the long-standing gap between passengers’ needs and airline policies.

Right now, travellers who cancel due to emergencies often lose the entire fare, and airlines offer refunds only in rare medical cases. This has generated thousands of complaints, prompting the government to step in and reshape DGCA refund norms to better support customers during unforeseen situations.

According to officials, one major airline has already begun discussions with insurance companies to make this new model possible. The idea is practical: since only a small percentage of passengers cancel at the last moment, insurers can absorb the cost. This mechanism will be integrated seamlessly into ticket pricing, enhancing air travel insurance India without making bookings more expensive for travellers.

Although online travel portals currently offer optional travel insurance during booking, only a limited number of passengers choose it. The new plan aims to build this insurance directly into the fare structure, reducing complaints and providing more predictable refunds under the revised airline cancellation policy India.

Insurance companies will determine the premium based on typical cancellation behaviour. If last-minute cancellations remain relatively low, the model will work well for airlines, insurers, and passengers alike. This creates a sustainable system that supports emergency cancellations without inflating fares, reinforcing the upgrades in DGCA refund norms.

The DGCA acknowledges that refund disputes—delays, partial refunds, or forced credit shells—have become a widespread issue. Though the government prefers not to interfere with airline business decisions, the volume of complaints made it necessary to set minimum standards for India flight refund rules. The final guidelines will be drafted after reviewing feedback from all stakeholders.

Overall, this change will greatly benefit passengers by eliminating the fear of losing money due to a last-minute flight cancellation. It is expected to boost confidence in the aviation sector, encouraging travellers to book flights without hesitation during uncertain times. With the new insurance-backed system, refunds will become more transparent, simple, and reliable—bringing a much-needed upgrade to air travel insurance India and the overall travel experience.