Travel Insurance Claim Denials and Compensation

Was your travel insurance claim denied for a cancelled trip?

Since the onset of the COVID-19 pandemic, Samfiru Tumarkin LLP has seen an influx in denials of trip cancellation claims from all over Canada. The most common reason we have noticed for why insurers deny such claims is the availability of a credit or voucher for claimed expenses.

For instance, if you booked a flight or a cruise, and had to cancel because of COVID-19 and related government travel advisories, the airline or cruise line may have offered you a credit or vouchers (i.e. non-monetary compensation) for future use.

In many cases, insurers are taking the position that if you are offered non-monetary compensation, such as a credit or a voucher, it means that you did not suffer a loss or penalty, or are otherwise precluded from being reimbursed for your expense by your travel insurer.

You have rights

Travel insurance policies are legal contracts.

If you were covered by a travel insurance policy through your credit card or through an insurance company directly, you have legal rights to claim compensation pursuant to the provisions of the policy.

Unless your travel insurance policy expressly states that non-monetary compensation such as a credit or a voucher excludes you from claiming reimbursement for an eligible expense, you should be paid by your insurer for that expense.

Samfiru Tumarkin LLP has successfully represented countless individuals who have been denied benefits by the insurance company. For years we have educated and provided guidance to Canadians on their legal rights through our popular television shows on Global and CTV, as well as radio stations across the country. Our insurance lawyers have been involved in high profile cases, including the “Million Dollar Baby” travel insurance case, Mitch Murphy, Sandra Bullock, and Julie Austin, to name a few.