The Canadian Life and Health Insurance Association (CLHIA) has issued an advisory asking travel insurance customers to be mindful about the terms of their insurance, as trips are being cancelled in the wake of the coronavirus outbreak.
Some travel service providers (whether for airlines, trains, etc.) offer coverage for cancelled trips, often in the form of refunds. But over the past month, many service providers have instead offered vouchers or credits that can be used for future travel, the association noted.
Speaking on behalf of travel insurers, CLHIA cautioned that travel insurance policies will not consider the policyholder to have suffered an insurable loss if the policyholder is offered full credit or a voucher for a future trip.
The association has encouraged customers to consider such stipulations and review the terms of their policies prior to submitting a claim for trip cancellation coverage. CLHIA has also suggested customers check the website of their travel insurer for any guidance on the matter, since each insurer will assess the particulars of each circumstance in accordance with the terms and conditions of the customer’s policy.
Any disputes over refunds and credits should be directed to travel service providers or the Canadian Transportation Agency, CLHIA added.
