In September 2020, a number of Canadian travelers who had bought a travel insurance policy from TD Home and Auto Insurance Company and who were denied trip cancellation coverage during the COVID-19 pandemic filed a class action lawsuit before the Ontario Superior Court of Justice alleging breach of contract on the part of the insurer. The latter denied reimbursement to the insured because they had been offered credits or vouchers in lieu of refunds.
On 6 October 022, the parties to the dispute reached a friendly settlement of the case. On the basis of the agreement, the insurer will pay an overall amount of $4.8 million in compensation to any Canadians who held a travel insurance policy between 16 March 2018 and 15 October 2021 and were fully or partially denied reimbursement because they received non-monetary compensation such as credits, coupons, or vouchers. The insurer also agreed to pay $300,000 in administration costs.
Before any step can be taken to implement the Settlement Agreement, the Court must first consider whether to approve it. The relevant hearing will take place on 17 February 2023.