TD Insurance settles trip cancellation lawsuit
Canada’s TD Insurance has agreed to settle a class action lawsuit over the wrongful denial of trip cancellation benefits to a group of travellers
The insurer agreed to pay CA$4.8 million in compensation to any Canadians who were insured under a TD Insurance travel insurance policy between 16 March 2018 and 15 October 2021, according to a report by the Globe and Mail.
The company also agreed to pay an additional $300,000 in administration costs as part of the settlement.
To claim the compensation, TD customers must have submitted a claim for trip cancellation and been fully or partially denied due to receiving trip vouchers, coupons or credits from airlines, hotels or other travel groups, in lieu of refunds.
TD Insurance has confirmed that it will offer reimbursements to three specific groups:
- Travellers who had a claim related to the amount they were paid for, and which was already reimbursed by a specific airline
- Travellers who were not received by an airline, or who had not received a credit or voucher for travel costs incurred
- Travellers who had been reimbursed by their airline, but who had received a credit or voucher for another expense they tried to claim under their TD policy.
The settlement comes after Ontario Superior Court Justice Edward Morgan certified a $10 million lawsuit that alleged TD had breached the terms of its travel cancellation policies after denying reimbursement claims, on the basis that policyholders had been offered credits or vouchers.
The settlement is currently awaiting approval at a hearing scheduled for 17 February 2023.
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