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,” said James Parker.

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 that,” he recalled. “It gives me some peace, 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.

“I mean, it says cancellation of insurance. To be honest, I didn't read the penalty,” Parker said.

“You'd think there would be no vacancy … it was impossible for us to make any other arrangements at that time.”

An Allianz Global Assistance spokeswoman said the Trip Cancellation and Interruption plan offered by WestJet does not cover accidents that affect prepaid accommodations at the policyholder's destination.

“Generally, for prepaid travel expenses to be eligible for reimbursement under trip cancellation benefits, the reason for cancellation must be listed as a 'covered reason' on the customer's insurance policy,” wrote Taijua Squire, Allianz Global Corporate Communications Manager. .

He said a copy of the policy would be given to the customer at the time of purchase.

Squire said all travelers should review their policies to understand what scenarios are and aren't covered.

He believed his complaint was valid and therefore would be compensated for the canceled flights, but later found out that it was not listed as a reason for the cancellation, and no refunds.

“I thought it was unfair and questioned why I needed insurance,” she said.

94% of claims paid: insurance association

A recent survey by the Canadian Travel Health Insurance Association found that 94 percent of travel insurance claims are paid.

“When most Canadians buy it, there are benefits. It's an unfortunate time when the expectation of coverage doesn't match the actual wording of the policy,” said Will McAleer, the association's executive director.

He said policies vary and advises shoppers to check what's included before boarding a flight.

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

For example, one of the “covered causes” listed on Allianz Global's website includes an accident that “makes your pre-booked destination uninhabitable after you book your trip.” In that case, the Parkers would have been covered, but that option was not included in the WestJet policy he purchased.

“It's not surprising that insurers in the Canadian market have many different policy wordings depending on the partner or affiliates they work with. And they can vary in terms of coverage and terms,” ​​McAleer said.

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

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

“I understand it's a business to make money, but I think you have to have the freedom to deal with changes or modifications that come up because you can't write everything, you know? I mean, that's 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.