Travel Disruptions and Labour Disputes: Now is a Good Time for an Insurance Reminder

As someone who has dealt closely with insurance companies, nothing puts my stomach in knots more than hearing someone blithely say “Ah, insurance will cover it!” There are far too many assumptions about what is covered and in what instances. For the sake of accuracy, insurance might cover it. 

With Air Canada flights being cancelled and trips being disrupted, a lot of people are probably taking a closer look at their travel insurance and calling their travel advisors.

While no travel advisor can be expected to be an expert on every travel insurance policy, there are a few ways you can help your clients navigate their coverage.

The best place to go is to the insurance provider. When your client bought their travel insurance, they would have been sent a booklet with the minutiae of the plan. A strike or lockout is often referred to as a “labour dispute” in the literature. If it’s a digital copy of the booklet, they can do a “control + F” search to find the relevant sections. If they call their insurance provider for information, make sure they make note of who they spoke to and when. Better yet if they can email or take screenshots of an instant message or chat conversation. Having things in writing can help clear up any confusion if things get muddied down the line.

Kinds of Coverage

For a more general overview of  travel insurance, the Government of Canada has some clear, easy to follow resources. Visit travel.gc.ca/travel for information on what people should look for when purchasing travel insurance, and the difference between kinds of insurance. A quick and dirty outline is:

Travel health insurance: covers urgent and emergent health expenses outside of your province.

Trip interruption insurance: covers costs once you have left for a trip that gets delayed or can’t be completed as planned.

Trip cancellation insurance: reimburses costs for a trip you cannot take. 

Each policy has its own set of conditions and exclusions, it's important to know the specifics of your coverage. 

Related: Is Domestic Travel Insurance Really Necessary?

Foreseeable Events

One thing that will be of specific concern for anyone trying to claim because of the Air Canada disruption will be the date the provider deems the labour action to be a “known” or “foreseeable” event.  

“If your travel insurance policy covers trip cancellation, interruption, delay or missed connection and a strike is listed as a covered reason, you may be reimbursed for prepaid travel costs that Air Canada or other providers won’t refund,” Will McAleer, spokesperson for Travel Health Insurance Association of Canada told Global News.

“Many travel insurance providers may indicate when the threat of the strike became a known event. Policies purchased prior to this date may include coverage, but those purchased after may not,” McAleer said.

However, some high end credit card insurance may still cover you, according to a report by the Canadian Press. It all comes down to the fine print. 

Air Passenger Protections 

The Air Passenger Protection Regulations (APPR) that offer compensation for interrupted or cancelled flights likely won’t grant any lump sum payments for passengers in this instance, as a strike would fall outside what is considered within the airline’s control. But the regulations state the airline needs to refund or make alternate travel arrangements, which Air Canada has stated they will do. “Air Canada will in all cases inform passengers of their rights under applicable rules if their flight is cancelled or delayed and meet its regulatory obligations,” it stated on its website.

Gabor Lukacs, president of the non-profit advocacy group Air Passenger Rights told Global News that passengers may be better off waiting for the airline to cancel, rather than pre-emptively cancelling their own flights and accepting the refund Air Canada is offering. “If you voluntarily accept a refund, then Air Canada (can) possibly argue, ‘A passenger chose a refund (and) we no longer owe them alternate transportation.’ But if you say, ‘No, I won’t accept the refund, give me alternate transportation,’ and they fail to do so (or) refuse to do so, they owe you compensation for your alternate transportation costs,” he said.

 

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