TD Insurance facing class action lawsuit over handling of pandemic trip cancellations
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Lyons, the lead plaintiff in the proposed class action, cancelled a 12-day trip for his family that was to begin on March 8 with a cruise out of Italy. According to the law firm, the trip was cancelled when the Canadian government issued travel advisories including to parts of Italy. In addition, due to an earlier health issue with one of Lyons’ teenaged children, their doctor advised them not to travel due to the global spread and dangers of the COVID-19 respiratory illness.
When Lyons put a trip cancellation claim through his insurer, TD Insurance, he was reimbursed only $78.97 — for a non-refundable portion of an AirBnB reservation — out of his $6,673.36 claim, according to the law firm.
“He was denied the portion relating to his family’s flights and cruise,” Samfiru Tumarkin said Wednesday.
“Contrary to the provisions of its own travel insurance policy, TD has taken the position that the availability of a credit or voucher disentitles Lyons to full reimbursement of his expenses.”
Tumarkin said TD reported an 8.9 per cent year-over-year increase in insurance revenue in the second quarter despite COVID-19, and alleged the company was “unjustly enriching itself by collecting premiums and refusing to pay legitimate claims.”
None of the allegations have been proven, and proposed class action lawsuits must be certified by a court before they can proceed.
Elizabeth Goldenshtein, a spokesperson for TD, said she could not comment on the specifics of the case as it is a matter that is before the courts.
“What I can tell you is that our trip cancellation coverage is consistent with the industry-wide position on this coverage,” she said. “Customers are eligible for Trip Cancellation coverage (that is, reimbursement for a trip not taken) when there is no option available for them to receive a credit and transfer their trip to another date.”
If a customer could receive “100 per cent credit and transfer their trip to a future date,” there is no eligibility for trip cancellation reimbursement, she said.
Financial Post
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