On 7 November 2023, the Delhi High Court ordered an insurance company to pay compensation to a couple which had canceled their honeymoon trip to Italy in February 2020 due to the spread of the COVID-19 pandemic.
The couple had purchased a policy covering the cancellation of their trip, which was planned for the end of February 2020. A few days before the trip, the government issued an advisory against travel to some countries, including Italy. Therefore, the couple canceled their trip and invoked the insurance policy to get refund. However, the insurance company argued that the policy explicitly excluded refund for cancellation due to government regulations and that, therefore, the couple was not eligible for refund.
The High Court pointed out that the government advisory could not be regarded as a regulation or a prohibition, since it only suggested that citizens did not travel to some countries. At that time, the ultimate decision concerning the cancellation of the trip rested on the couple, which freely decided to abide by the advisory without any obligation to do so. Therefore, the Court held that the cancellation of the trip should be covered by the policy.