Read the post: Winnipeg couple's travel insurance claim 'not covered', says insurer

A senior Winnipeg employee is questioning the cost of buying flight cancellation insurance after his claim was rejected.

James Parker, 78, and his wife, Rena, bought two WestJet tickets to Calgary last December to visit relatives in January. They bought the cheapest ticket option knowing they wouldn't get a refund or credit if they had to cancel, so they decided to get cancellation insurance just in case.

Insurance was a cheaper option than more expensive tickets.

Before covid we didn't buy cancellation insurance, James Parker said.

With so many delays with airlines since the pandemic, Parker says she thought she'd get insurance for peace of mind. After selecting the tickets and seats, he clicks the box to cancel the insurance.

It was $117, I think something like, he remembered. It gives me some peace of mind, you know, that's what I did.

A few weeks later, she said, they got a call saying their accommodation was no longer available because their relative's house had been flooded, forcing them to move for six weeks. The Parkers rented a condo in the building, but said they could no longer live there.

WestJet refunded Parker's seat selection, but he still owed $623.72 for the flight. She filed a complaint with Allianz Global Assistance Canada and thought they would protect her. He didn't.

Allianz Global Assistance rejected Parker's claim because the flooding that made her home unaffordable was not a “covered cause” under her cancellation policy. He initially filed a claim for $823.72, but later called Allianz and said he had been charged $200 by WestJet for seat selection and only claimed $623.72 from the insurer.

Photo: (courtesy of James Parker)

A senior Winnipeg employee is questioning the cost of buying flight cancellation insurance after his claim was rejected.

Insurance was a cheaper option than more expensive tickets.

Before covid we didn't buy cancellation insurance, James Parker said.

With so many delays with airlines since the pandemic, Parker says she thought she'd get insurance for peace of mind. After selecting the tickets and seats, he clicks the box to cancel the insurance.

It was $117, I think something like, he remembered. It gives me some peace of mind, you know, that's what I did.

WestJet refunded Parker's seat selection, but he still owed $623.72 for the flight. She filed a complaint with Allianz Global Assistance Canada and thought they would protect her. He didn't.

“They introduce a policy and price it according to the wording they have, so it covers certain things in one policy but not others.,” McAleer said.

For example, one reasons included Allianz Global covers the accident listed on the website this will make your pre-booked destination ineligible for accommodation once you have booked your trip. In that case, the Parkers would have been covered, but that option was not included in the WestJet policy he purchased.

It is not unusual for insurers in the Canadian market to have different policy wordings depending on the partner or partnership they are working with. And they can vary in terms of coverage and rules, McAleer said.

Parker believes he has good reason to stop his trip and should be shut down.

“It's the principle rather than the money that worries me at the moment,” he said, adding that travel insurance policies need to be nuanced.

I understand that it's a business to make money, but I think there should be freedom to deal with changes or modifications that come up, because you can't write everything, you know? That is, this life Parker said.

He said he would prefer to buy travel insurance from a local company in the future, hoping to be covered if something were to happen rather than just checking a box.

The Winnipegger refused to return the flight, even though he had purchased cancellation insurance

Allianz Global Assistance states that an accident in pre-booked accommodation is not a covered cause under the policy.

Caroline Bargut (new window) · CBC News

The Winnipegger refused to return the flight, even though he had purchased cancellation insurance

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