Travel Insurance Claims in Canada: What You Need to Know
According to CTV News, from January 2022 to April 2023, over 10 million Canadians travelled internationally, a 7% rise compared to the same period in 2019.
Following a pandemic slowdown, global air travel is rebounding strongly. Between 2022 and 2024, airline passenger traffic worldwide surged by 30%, sparking the creation of new flight routes, but also resulting in increased issues such as baggage mishandling, flight cancellations, and rerouted journeys.
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The Real Value of Travel Insurance
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.
Breakdown of Canadian Travel Insurance Claims:
33%
Of claims were related to visits to a doctor, hospital or clinic
24%
Of claims were related to flight delays
Here’s a closer look at Canada’s most common travel insurance claims:
Medical Emergency Claims Abroad
Medical emergencies can strike unexpectedly when travelling abroad, making this coverage the most crucial part of your travel insurance. Your government health plan offers minimal protection outside Canada.
Every service, from the ambulance ride to the specialist consultation, becomes an out-of-pocket expense. This breakdown illustrates common vacation medical issues and the chain of costs they typically trigger.
| Emergency Scenario | Ambulance / Transport | Emergency Room Fee | Specialist / Surgeon Fee | Inpatient Stay (Per Day) | Prescription & Supplies |
|---|---|---|---|---|---|
| Fractured Limb (e.g., Ski Accident) | ✓ | ✓ | ✓ | X | ✓ |
| Severe Allergic Reaction (Anaphylaxis) | ✓ | ✓ | ✓ | X | ✓ |
| Acute Appendicitis (Emergency Surgery) | ✓ | ✓ | ✓ | ✓ | ✓ |
| Serious Infection/Fever (Requires IV) | X | ✓ | ✓ | ✓ | ✓ |
| Unexpected Severe Pain (e.g., Gallstones) | ✓ | ✓ | ✓ | ✓ | ✓ |
The Bottom Line on Costs
In many countries, a single night’s hospital stay can cost thousands of dollars. As you can see, most emergencies trigger multiple fees at the same time. This is why having comprehensive travel medical insurance with high coverage limits (typically $2 million to $5 million) is the most critical step you can take before leaving home.
Example of Medical Emergency Costs Abroad
Even a minor incident on vacation can lead to a surprisingly high bill when navigating a foreign healthcare system.
United States:
A basic doctor consultation can cost $100 to $200 or more, depending on the provider and insurance.
Switzerland:
Costs are high, similar to the US. A simple 15-minute consultation costs roughly CAD $200, with more extended visits starting around CAD $475.
Germany:
A general practitioner visit costs about €75 (CAD $110) for non-residents.
United Kingdom:
GP consultations typically cost around €75.
Australia:
A 15-minute GP consultation costs approximately CAD $100.
Western Europe:
(Netherlands, Belgium, Ireland): Costs vary from moderate to high depending on the country and provider.
Trip Disruption or Cancellation Claims
Trip disruptions can turn your dream vacation into a stressful experience. Coverage for trip cancellation and interruption helps you manage these unexpected events with confidence.
A Kanetix.ca survey of 960 Canadians found nearly two-thirds either don’t buy or aren’t sure if they have trip cancellation insurance before travelling.
According to Kanetix, “[Trip Cancellation & Interruption] are distinct coverages and need to be bought individually.”
28% said they have this coverage through their credit card, 15% through employee benefits, and 12% assume their travel medical insurance covers cancellations, but it often doesn’t.
If you don’t buy an all-inclusive plan combining emergency medical, trip cancellation, and interruption, you might think you’re covered when you’re not.
Trip Cancellation Scenarios
Scenario 1: Unexpected Illness or Injury
Imagine you planned a dream trip to Europe, but a week before departure, you or a close family member falls seriously ill. Medical advice is to postpone. Trip cancellation insurance reimburses non-refundable costs like flights and hotels if purchased before illness.
Scenario 2: Job Loss or Layoff
You booked a vacation but lost your job unexpectedly. Financial constraints prevent travel. Depending on your policy, job loss may be covered if the coverage was active at the time of notice of job loss.
Trip Interruption Scenarios
Scenario 1: Family Emergency Requires Immediate Return Home
On a two-week cruise, you get a call that a family member is hospitalized and needs your care. You must cut your trip short. Trip interruption coverage reimburses unused cruise fare and prepaid travel expenses.
Scenario 2: Business Trip Disrupted by Natural Disaster
During a business trip, a hurricane warning forces evacuation. Trip interruption coverage reimburses unused hotel and conference fees.
Trip interruption coverage applies when an accident, illness, or other event:
- Directly affects you or your travel companion
- It is unexpected and beyond your control
- Is severe enough to require itinerary changes
Important Reminder: Coverage limits vary by insurer; please review your policy details carefully.
Lost or Delayed Baggage
It’s crucial to understand that baggage coverage is subject to maximum limits set by your insurer for the total claim, individual items, and specific benefits like delayed baggage. The following table highlights which scenarios are covered and the key financial limits for major Canadian travel insurers.
Important Reminder: Insurance policies and their maximum benefit amounts are subject to change. These figures are based on recent information but should always be confirmed directly with the insurer before purchase, as they may vary depending on the specific plan and coverage level chosen.
| Insurer | Overall Baggage Maximum (Lost/Damaged) | Delayed Baggage Maximum | Document Replacement Maximum | Per Item Limit |
|---|---|---|---|---|
| Blue Cross Saskatchewan | $1,500/trip per person | $500 (if delayed > 12 hrs) | $250 | Not explicitly stated, but typically a low percentage of the overall limit. |
| GMS TravelStar | $1,500/trip per person | $400 (if delayed > 12 hrs) | $100 | $500 (per item or set) |
| TuGo | Varies by plan; typical maximums range from $1,500 to $3,000/trip per person | $200 (if delayed > 12 hrs) | Varies by plan; typically included in overall maximum. | Varies by plan; generally $500 or less. |
Best Practices for Baggage
Baggage insurance supplements airline compensation. Pack your valuables in carry-on luggage and consider photographing the contents of your suitcase before travel for easier claim filing.
Frequently Asked Questions
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.
Disclaimer: 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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Last updated:
Posted in Travel on November 19, 2024 by Hope Prost
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