Top Travel Insurance Claims in Canada You Should Know

According to CTV News, from January 2022 to April 2023, over 10 million Canadians travelled internationally, marking a seven percent rise compared to the same timeframe in 2019.

Following a period of reduced activity during the pandemic, global air travel is experiencing significant growth. Between 2022 and 2024, the number of passengers scheduled to board with airlines worldwide surged by 30%.

This uptick has resulted in numerous issues, such as baggage mishandling, flight cancellations, and rerouted journeys, alongside the introduction of new flight routes both domestically and internationally.

Your perfect vacation can turn upside down fast. A cancelled flight, missing luggage, or a medical emergency might catch you off guard. Canadian travellers often wonder about travel insurance’s actual value. A recent survey shared by the Canadian Underwriter back in 2019 revealed that slightly more than a quarter of 1,000 Canadians surveyed have filed an insurance claim due to incidents experienced during travel.

One-third (33%) of those claims were related to visits to a doctor, hospital or clinic, while flight delays account for one-quarter (24%) of claims.

Here’s some insight into Canada’s most common claims filed for travel insurance:

Medical Emergency Claims Abroad

Medical emergencies can strike unexpectedly when you are travelling abroad. This makes medical emergency claims the most crucial part of your travel insurance coverage. Your government health insurance offers minimal protection outside Canada.

Common Medical Emergencies Requiring Claims

Some common medical emergencies that tend to occur are fractures from falls, cardiovascular problems, and respiratory issues.

Medical problems can range from adverse reactions to local food to serious conditions that require hospitalization. Travel insurance typically covers emergency hospital expenses, prescription medications, and air ambulance services as needed.

Average Medical Costs by Country

• United States: A basic consultation with a general practitioner can range from $100 to $200 or more, depending on the provider and insurance coverage.
• Switzerland: Costs can be high, similar to the US, especially for non-residents. A simple 15-minute consultation costs roughly CAD $200. Longer consultations can start anywhere from CAD $475 for on-site treatment.
• Germany: A consultation with a general practitioner typically costs around €75 for non-residents, which converts to CAD $110.
• United Kingdom: Healthcare costs are generally high; a GP medical consultation can cost around €75.
• Australia: Costs are generally approximately €70 for a 15-minute consultation with a general practitioner costing CAD $100.
• Some Western European Countries (Netherlands, Belgium, Ireland): Costs can be moderate to high, depending on the specific country and provider.

Trip Disruption Or Cancellation Claims

When trip disruptions occur, a well-planned vacation can quickly become stressful. Your travel insurance coverage for trip cancellation and/or trip interruption will help you handle these unexpected situations confidently. A survey by Kanetix.ca involving 960 Canadians revealed that nearly two-thirds of participants either do not purchase or are unsure whether they possess trip cancellation insurance prior to embarking on a vacation.

28% indicated that they already have this coverage through their credit card. 15% of Canadians reported having trip cancellation insurance through their employee benefits.

12% assume their travel medical insurance also covers cancellations. But is this the case?

According to Kanetix, “[Trip Cancellation & Interruption] are distinct coverages and need to be bought individually.”

If an all-inclusive plan is not acquired—which combines emergency medical, trip cancellation and interruption into one package—travellers might mistakenly believe they have comprehensive coverage when they do not.

Trip Cancellation Scenarios

Scenario 1: Unexpected Illness or Injury

You’ve planned a dream vacation to Europe, but a week before your departure, you or a close family member falls seriously ill. Medical advice is to postpone the trip. Trip cancellation insurance would reimburse you for non-refundable costs like flights, hotel bookings, and tours if the coverage were purchased before the illness was contracted.

Scenario 2: Job Loss or Layoff

You’ve booked a much-needed vacation but unexpectedly lose your job or are laid off. Financial constraints make it impossible to afford the trip. Depending on the specific policy, job loss may be a covered reason for trip cancellation, allowing you to recoup some of the costs if the coverage was in effect prior to the notice of job loss.

Trip Interruption Scenarios

Scenario 1: Family Emergency Requires Immediate Return Home

A person is on a two-week cruise vacation when they receive a call that a family member has been hospitalized and needs their immediate care. They must abandon their cruise and return home immediately. Trip interruption coverage would reimburse them for the unused portion of their cruise fare and any other prepaid travel expenses, such as shore excursions or additional cruise activities.

Scenario 2: Business Trip Disrupted by Natural Disaster

A businessperson is on a week-long business trip. During their trip, a hurricane warning is issued, forcing the evacuation of the area. The businessperson must cut their trip short and return home early. Trip interruption coverage would reimburse them for the unused portion of their nonrefundable business trip expenses, such as hotel accommodations and conference fees.

Trip interruption coverage offers benefits under circumstances where an accident, illness, or another occurrence:

• Directly impacts you or your travel companion
• It must be unexpected and beyond the control of the affected individual
• It must be severe enough to warrant changes to the planned itinerary

Coverage limitations or exclusions vary among insurers; please be sure to review your individual insurer’s coverage wording.

Lost or Stolen Baggage

Baggage coverage offers protection if your luggage is delayed beyond 12 hours or if it is lost, stolen, or damaged during your journey. The insurer provides a maximum reimbursement of a specified amount (refer to the insurer’s wording) per trip for each insured individual.

Coverage includes:

•     Compensation for lost, stolen, or damaged baggage, up to the insured limit, for any theft, loss, or damage occurring within the coverage period.
•     Additionally, there is a benefit for replacing official documents, offering a specified amount for replacing items like passports, driver’s licenses, birth certificates, and visas.

Delayed Baggage Expenses

Baggage insurance is a backup to airline compensation. Airlines must refund any baggage fees if they lose or damage your luggage. You should photograph your suitcase contents before travel and pack valuable items in your carry-on luggage to get maximum protection.

Compensation for delayed checked baggage is up to a specified amount, as outlined in your insurance wording, when your checked luggage is delayed by over 12 hours at your destination. This covers expenses such as essential toiletries and clothing purchases.

Unforeseen circumstances can disrupt even the best-laid travel plans. Investing in travel insurance, even for domestic trips, can provide peace of mind. By understanding the comprehensive coverage offered by various policies, including those provided by employers or credit cards, you can protect yourself and your loved ones from financial loss in case of unexpected events. Remember, a small investment in insurance can yield significant benefits when you need it most.

If you’re not sure about whether your current coverage on a credit card, workplace benefits, or travel policy will cover you completely, ask yourself the following:

1. Are all travellers covered under the plan?
2. How many days are covered?
3. What benefits are included? (baggage loss, trip cancellation or interruption, 24/7 Travel Assistance)
4. What are the coverage limits?

FAQs

What is typically included in travel insurance coverage?
Travel insurance typically covers urgent medical costs, such as hospitalization charges and the fees for nurses, doctors, and other healthcare providers required for emergency medical care and treatment.

How can I maximize the benefits of travel insurance?
To get the most out of your travel insurance, it’s advisable to purchase the policy immediately after making your first non-refundable trip payment, such as for airfare or a cruise. This strategy extends the coverage period, potentially covering more issues that might lead to trip cancellation.

What is the average cost of travel insurance in Canada?
The cost of travel insurance in Canada varies based on the following:

• Traveller’s Age: The age of the individual(s) travelling
• Travel Group Size: The total number of individuals on the trip
• Trip Duration: The length of time for the journey
• Insurance Coverage: The extent of coverage chosen
• Travel Destination: If the destination is considered remote or poses high risks
• Health Conditions: Presence of any pre-existing medical conditions in the traveller

*The information provided in this article is intended as a general guide. Please consult your specific insurance policy for precise coverage details, including conditions, definitions, and exclusions that apply to your individual insurance.

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