Can I cancel if there is a death of a passenger or close relative?

Generally no. It is always a good idea to have travel insurance. Some airlines may waive penalties in the event of the death of a very close relative, but they require evidence of the death and the relationship between the deceased and the traveller. Generally, an airline will provide authority for a refund in the event of the death of a traveller, or the death of a member of a traveller's immediate family (mother, father, son, daughter etc). In the event of the death of a person the traveller was going to visit, but who is not an immediate family member, the airline will not give an authority to refund. It is always a good idea to have travel insurance, as some non-refundable expenses may be claimable