The COVID-19 pandemic and the travel restrictions that ensued as a result upended the plans of a lot of people. It also played havoc with the finances of travel companies and the banks that issued insurance on trips, as those vacations had to be cancelled.
The TD Bank in Toronto was one institution that was responsible for covering travel expenses and the bank is now the subject of a class-action lawsuit. This is what’s at stake in the TD travel insurance lawsuit.
The law firm of Samfiru Tumarkin LLP represents lead plaintiff Kevin Lyons, along with other affected individuals throughout Canada. Lyons had a family trip planned to Italy, one that included a Mediterranean cruise. The trip was to take place in early March 2020.
The Canadian government advised against travel, so Lyons followed their advice and canceled the trip. He filed a claim for nearly $6,700 with TD Bank per the travel insurance policy he had purchased.
The bank denied the claim, saying that a travel voucher and credit for the same amount was an appropriate way to compensate Lyons for the cancellation. Lyons, along with others in similar situations who had the same experience with TD Bank, responded by turning to the Tumarkin law firm. The result is a $10 million lawsuit filed in Ontario Superior Court.
Tumarkin’s lawsuit says the bank adopted a posture that was “adversarial and hostile” and that they treated Lyons and other plaintiffs with “suspicion and contempt.” The class-action alleges that TD Bank has gotten rich collecting premiums and refused to pay legitimate claims.
The bank has been measured in their public comments on the lawsuit, preferring to speak in generalities regarding travel industry policies regarding cancellation and refunds. “Our trip cancellation coverage is consistent with the industry-wide position,” spokesperson Elizabeth Goldenshtein said on behalf of TD Bank.
Tumarkin countered: “Nowhere does it say in the policy that if you’re offered a credit or voucher that the insurance company is off the hook for reimbursing you that expense.” Tumarkin will make the case that if TD Bank wanted alternate methods of reimbursing customers, then the insurance policy needs to spell that out.
What’s more, many of the plaintiffs in the class-action say credits or vouchers are impractical. As an example, Tumarkin cited a woman who was taking her elderly mother on what was supposed to be the mother’s last trip.
Furthermore, the attorney points out that there’s no guarantee that any of the involved airlines will even be in business when his clients may be able to travel again. Or, given that travel restrictions remain in place around the world, when they’ll even be permitted to.
Thus, Tumarkin, says that TD Bank is guilty of bad faith and using the offer of vouchers and credits as a method to discourage future claims against the travel insurance.
Canadian law requires that the lawsuit be approved by a judge before proceeding and Tumarkin is presently seeking that judicial approval.