Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
Toronto-Dominion Bank and TD Home and Auto Insurance have been hit with a class action lawsuit accusing them of refusing to pay travel insurance claims to customers who were offered vouchers or credits when their trips were cancelled due to the COVID-19 pandemic.
Plaintiff Kevin Lyons says he had booked a 12-day vacation that included a flight to Italy and a Mediterranean cruise in early March. However, his family doctor advised the family not to go on the trip because of the risk COVID-19 posed to his teenager, who is a survivor of leukemia.
After the government issued COVID-19 travel advisories, Kevin reportedly cancelled the trip and submitted a claim for $6,673.36 with TD Bank, according to the Peterborough Examiner. He says he received less than $80 for part of his Airbnb reservation, the TD Bank class action lawsuit says.
According to the TD Bank class action lawsuit, the rest of Kevin’s trip cancellation claim was denied because he had travel credits available to him for the flights and the cruise.
However, he says his travel insurance policy did not state that the offer of vouchers or credits would preclude him from receiving reimbursement of his travel expenses.
Kevin’s class action lawsuit is the first in Canada to seek reimbursement for travel cancellation insurance claims stemming from trips cancelled due to the COVID-19 pandemic.
Class Members of the proposed TD Bank class action lawsuit include anyone insured by TD for trip cancellation benefits since March 16, 2018, the Peterborough Examiner reported. A judge must approve the TD class action lawsuit before it can proceed in court.
Lawyer: Insurance Company Should Reimburse Policyholders
Kevin’s lawyer is concerned that numerous Canadians are finding out that their travel insurance claims are being denied because airlines, cruise lines and lodging companies have offered credits or vouchers for future travel.
“I’ve spoken with quite a few individuals who had submitted claims, and they’re being denied,” lawyer Sivan Tumarkin told the Peterborough Examiner. “They’re not being told by the insurance companies that you don’t have coverage.”
“What they’re told is because you are being offered a credit or voucher by the airline, by the cruise line … that somehow disentitles you to reimbursement under the insurance policy.”
Tumarkin says Kevin’s policy fails to indicate that the offer of a credit or voucher would preclude policyholders from receiving reimbursement for their cancelled trips. He notes Kevin’s experience is not unique.
Canadians Frustrated with Lack of Travel Insurance Coverage
According to Tumarkin, many Canadians are frustrated with their travel insurance experiences because vouchers are an inadequate replacement for refunds due to the uncertainty caused by COVID-19 and its impact on health.
“They’re just angry,” Tumarkin told CBC. “One lady, she said, ‘My elderly mother is not going to be able to travel. This was going to be the last trip.’ For her it’s principle. It’s just not right.
“How do we know that cruise line is going to be in business? It’s so speculative now. These airlines, are they going to be in business?”
Consumers are concerned about what the future holds and value the certainty of cash over the promise of vouchers or credits from companies that may no longer exist in the same capacity in the future. They are also worried about how long the COVID-19 health risks will impact travel.
Many are also concerned about their personal financial circumstances during these uncertain times. The money from their cancelled travel plans could provide a little extra security as they navigate the new social and economic landscape during the pandemic.
Class Action Lawsuits Target Insurers Over COVID-19 Claim Denials
Tumarkin notes that the legal cost of individual claims against insurance companies precludes many consumers from taking the claim to court.
However, class action lawsuits are a way that numerous affected consumers can join together to take legal action and seek the compensation they are entitled to receive.
Numerous class action lawsuits have already been filed against insurance companies that have allegedly denied coverage to policyholders for business interruption claims related to COVID-19 restrictions.
Economic Mutual Insurance is one of the latest insurers to face a COVID-19 business interruption coverage denial class action lawsuit.
Airlines are also facing class action lawsuits from Canadians seeking refunds for flights they were unable to take during the COVID-19 pandemic.
“I understand where they’re coming from, whether I agree or not,” Tumarkin said of the airlines’ offerings of vouchers or credits, according to CBC. “But insurance companies have specifically insured against the risk of cancellation.”
Kevin is represented by Samfiru Tumarkin LLP.
ATTORNEY ADVERTISING
Top Class Actions is a Proud Member of the American Bar Association
LEGAL INFORMATION IS NOT LEGAL ADVICE
Top Class Actions Legal Statement
©2008 – 2024 Top Class Actions® LLC
Various Trademarks held by their respective owners
This website is not intended for viewing or usage by European Union citizens.
