Class-action lawsuit launched against TD for refusing travel insurance claims

Many Canadians were forced to cancel their travel plans when the COVID-19 pandemic set in and government-related travel restrictions brought out-of-country movements to a halt. 

As the travel industry is well aware, numerous consumers were issued future travel vouchers, or credits, instead of refunds for their cancelled trips. 

Now, a new class-action lawsuit launched by a Canadian law firm is targeting a major bank for refusing to pay travel insurance claims to customers who were offered those credits. 

Samfiru Tumarkin LLP has launched a national class action lawsuit against TD over its refusal to pay claims across Canada following trip cancellations due to the COVID-19 pandemic.

The lawsuit alleges that TD has been denying trip cancellation claims on the basis that customers have been offered credits or vouchers by an airline or other company, despite such a circumstance not appearing in the insurance policies.

"Travel insurance policies are intended to provide peace of mind to individuals and their families," stated Sivan Tumarkin, insurance lawyer and co-founding partner at Samfiru Tumarkin LLP. "It is only right that TD and other travel insurers honour their contractual obligations and pay legitimate claims when Canadians are experiencing unprecedented financial hardships."

The claim that started it all 

The lead-plaintiff in the TD class action is Kevin Lyons, who had booked a 12-day trip for himself, his wife and two children, scheduled to commence with a cruise out of Italy on March 8, 2020. 

One of Lyons' children is a 16-year old Leukemia survivor and the family was expressly advised by their doctor, prior to their trip, not to travel due to medical reasons relating to the global spread and dangers of COVID-19.

Lyons cancelled the family trip when the government issued travel advisories, including to parts of Italy, and subsequently put in a trip cancellation claim through his insurer, TD Insurance. 

Out of his $6,673.36 claim, he was reimbursed only $78.97 for the non-refundable portion of his AirBnB reservation. He was denied the portion relating to his family's flights and cruise.

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.

"Clearly credits and vouchers are not the same thing as reimbursement for paid expenses, and unless travel insurance policies expressly exclude benefits where a credit or voucher is available, insurers must pay these claims," stated Tumarkin. "Many Canadians are experiencing similar issues with their travel insurers who are misinterpreting and misapplying travel insurance policies all over the country."

Tumarkin added: "TD Bank, which reported an 8.9% year-over-year increase in Q2 2020 insurance revenues to $1.13 billion despite COVID-19, has been unjustly enriching itself by collecting premiums and refusing to pay legitimate claims."

Samfiru Tumarkin LLP is a prominent law firm specializing in insurance, employment and disability law in Ontario and British Columbia. 

The firm's website contains more information about the class action lawsuit against TD Insurance.

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