Insurance company faces class action lawsuit over unpaid travel insurance claims

CKTB - News - Travel Insurance

When COVID-19 hit, many saw their travel plans abruptly cancelled. That includes thousands of students who'd already paid for school trips.

Now, a class action lawsuit is being launched against an insurance company, lawyers claim, has refused to pay out travel insurance claims.

It's simply a finger pointing situation," says Sivan Tumarkin, a partner at Samfiru Tumarkin LLP. "These families and students across the country are essentially left in the middle, in limbo since March, not having gotten a cent."

He accuses the tour company, Explorica Canada, and the insurance company, Arch Insurance Canada, of blaming each other. He says Arch is claiming Explorica has not submitted the proper documentation.

Tumarkin believes there are thousands of these kind of a claims across the country, with families out $3,000 to $15,000 each.

The lawsuit only targets the insurance company, which Tumarkin says, is responsible for paying out the claims.

"Under the policies, it's quite clear, if the school boards or the schools cancel those trips because of risk of harm...you have to reimburse these families and they haven't done that," he says.

The allegations have not been proven in court.