Ontario traveller's $147,000 medical bill highlights importance of understanding insurance

An Ontario man's medical emergency while vacationing in Mexico has become a cautionary tale for Canadians travelling abroad, underscoring the importance of carefully reviewing travel insurance policies before departure.

As first reported by CTV News, Bahoz Ali of Oshawa, ON, believed he had taken the proper precautions before leaving for a vacation to Cancun in April 2024.

Before travelling, he purchased Manulife’s Global Youth All-Inclusive travel policy.

But after a serious medical crisis at his Cancun resort left him hospitalized for more than a week and later transported back to Canada by air ambulance, Ali learned that having insurance does not always guarantee coverage.

Just two days into his trip, Ali began feeling ill and suffered multiple seizures before falling into a coma. He received emergency medical treatment in Mexico for eight days before being medically evacuated back to Canada, where he continued receiving care.

Initially, it appeared that his medical expenses had been covered through his travel insurance policy. However, nearly a year later, Ali was informed that his claim had been denied, leaving him responsible for a staggering bill of $147,502.

After an investigation, it was found that the denial stemmed from a visit Ali made to a walk-in clinic shortly before his departure.

About a week before flying to Mexico, he experienced flu-like symptoms and sought medical advice. According to Ali, a physician determined it was a routine illness and cleared him for travel.

However, the insurer later concluded that the medical consultation fell within the policy's 90-day stability period requirement for pre-existing conditions.

Manulife determined that because Ali had sought medical attention before travelling, the claim did not meet the policy's eligibility criteria.

“Manulife can confirm that medical records indicate that prior to travel, Mr. Ali was experiencing symptoms and had sought medical care related to a pre‑existing condition. Under the policy, this condition fell within the three-month stability period prior to departure. Since the condition was known at the time of travel based on the prior medical care, this affected how coverage was applied,” the company wrote in a statement to CTV.

“This situation underscores the importance of understanding travel insurance coverage, as policies contain specific terms, conditions, and exclusions.”

Ali's family has appealed the insurer's decision twice without success.

Stability clauses

The case illustrates one of the most misunderstood aspects of travel insurance: stability clauses.

Many policies require travellers to be free from changes in symptoms, treatment, medication, or medical consultations for a specified period before departure.

Even relatively minor medical visits can sometimes affect coverage eligibility.

The financial consequences of denied claims can be devastating. Emergency medical treatment and air ambulance services outside Canada can quickly reach six-figure costs, making travel insurance an essential safeguard – but only when travellers fully understand the terms of their coverage.

Reading a policy's exclusions, asking questions about pre-existing conditions, and disclosing any recent medical issues can help prevent costly surprises later.

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