A good number of Canadian consumers who buy trip cancellation insurance may be in for a nasty surprise when they try to make a claim.
“You’re basically gambling with a slot machine that in many instances has been engineered to never pay out,” Vancouver-based lawyer Scott Stanley from Murphy Battista said.
Stanley acts for victims and their families with claims against insurance companies.
“Most people will find themselves without coverage because they have innocently bought insurance not knowing that they will never have coverage because of their pre-existing health conditions or those of their family,” he said. They just simply don’t make the association.”
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That was the case for Tracey Plevy. In August 2015, Plevy and her husband booked a $10,000 cruise to celebrate their 25th wedding anniversary. She made sure to buy travel cancellation insurance for an additional $350. The day after purchasing that insurance, Plevy says her mom went to hospital for a swollen leg. Plevy’s mom was diagnosed with cancer, but it was unclear just how serious the cancer was since more testing had to be done.
Plevy decided to go on the cruise, but five days into the trip, the Chilliwack resident received devastating news.
“My mother had a rapid form of lung cancer,” she said.
Plevy cut her cruise short and rushed home. When she submitted a trip interruption claim for over $7,000, it was denied. She appealed, but was denied a second time. Plevy says her mother’s medical records were reviewed between May 30 to August 29, 2015 and the swollen leg was seen as a pre-existing condition.
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The insurance company, Travel Guard Canada, stated:
“The policy purchased excludes conditions that do not meet the policy definition of stable and controlled. Unfortunately, as this condition was present with symptoms prompting further testing/treatment prior to the risk date of August 29, 2015 we remain unable to extend coverage for your loss.”
Plevy disagrees.
“How are you to know that someone that has a swollen leg that they’re going to have cancer or going to have a terminal illness and they’re going to die?”
So what can consumers do?
“I can give all the advice in the world, but it makes no difference until the insurance industry reforms itself and by that they need to make sure that people have a better understanding of what they’re buying and what it actually covers,” Stanley said.
Plevy’s mother passed away this past August. Plevy may appeal again, but isn’t sure if it’s worth her time.