Read the fine print: Winnipeg couple's travel insurance claim 'not covered,' insurer says

A Winnipeg senior is ques‐ tioning the value of buying flight cancellation insur‐ ance after his claim was denied.

James Parker, 78, and his wife, Rena, bought two tick‐ ets on WestJet flights to Cal‐ gary last December to visit relatives in January. They pur‐ chased the cheapest ticket option knowing they would‐ n't get a refund or credit should they need to cancel, so they decided to get cancel‐ lation insurance just in case.

The insurance was a cheaper option than the more expensive tickets.

"Pre-Covid, we didn't real‐ ly buy cancellation insur‐ ance," James Parker said.

Because there have been so many delays with airlines since the pandemic, Parker says he thought he would get insurance for peace of mind. After he selected his tickets and seats, he clicked on the box for cancellation insur‐ ance.

"It was $117, I think, something like that," he re‐ called. "It gives me a little bit of peace of mind, you know, so that's what I did."

A few weeks later, he says, they got a call that their ac‐ commodations would no longer be available because their relative's condo had flooded and she was forced to move out for six weeks. The Parkers had rented a condo in the building, but were told they would no longer be able to stay there.

WestJet refunded Parker's seat selection, but he was still out $623.72 on the cost of the flight. He filed a claim with Allianz Global Assistance Canada, thinking he would be covered. He was not.

"I mean, it said cancella‐ tion insurance. Quite hon‐ estly, I didn't read the fine print," Parker said.

"You would think there would be some leeway … it was impossible for us at the time to to make other arrangements."

A spokesperson for Allianz Global Assistance says the trip cancellation and inter‐ ruption plan offered through WestJet does not cover disas‐ ters that affect prepaid ac‐ commodations at the in‐ sured's destination.

"In general, for prepaid travel expenses to be eligible for reimbursement under trip cancellation benefits, the reason for cancellation must be listed as a "Covered Rea‐ son" within the customer's policy of insurance," wrote Tayjua Squire, manager of corporate communications for Allianz Global.

She said a copy of the policy would have been provided to the customer at time of purchase.

Squire said all travellers should review their policy to understand the scenarios that are covered, and those that are not.

He believed his claim was reasonable and would there‐ fore be reimbursed for the cancelled flights, but later learned if it's not listed as a covered reason no refund is provided.

"I thought it was unfair, and I questioned my idea about what insurance is for," he said.

Insurance association: 94% of claims are paid

The Travel Health Insurance Association of Canada says a recent survey showed 94 per cent of travel insurance claims are paid.

"The benefits are there for many Canadians when they're purchasing it. It's the unfortunate times when the coverage expectation doesn't line up with the actual wording of the policy," said the association's executive di‐ rector, Will McAleer.

He says policies vary, and advises purchasers to be‐ come familiar with what's covered for before boarding the flight.

"They put policies in and they price them according to the wording that they've got, so it'll cover certain things in one policy, but maybe not another," McAleer said.

For example one of the "covered reasons" listed on Allianz Global's website in‐ cludes a disaster "that ren‐ ders your pre-booked desti‐ nation accommodation unin‐ habitable after you book your trip." In that case, the Parkers would have been covered, but that option was not included in the WestJet policy he purchased.

"It's not unusual for insur‐ ers in the Canadian market to have many different policy wordings depending on the partner or the partnership that they're working on. And those can differ in terms of coverages and provisions," McAleer said.

Parker feels he had a valid reason to cancel his trip and should have been covered.

"It's the principle more than the money that is both‐ ering me at the moment," he said, adding travel insurance policies need to be more nu‐ anced.

"I understand it's a busi‐ ness to make money, but I think there should be leeway to deal with changes or mod‐ ifications that arise, because not everything can be written down, you know? I mean, it's life," Parker said.

He said in the future he would rather buy travel in‐ surance from a local com‐ pany, and not just tick off a box and hope he will be cov‐ ered if anything happens.