Parents and students of the Sunshine Coast school district whose trips to European countries were cancelled in March due to COVID-19 have yet to be compensated because of an apparent dispute between the travel agency and insurance providers.
“We are so disappointed with the travel insurance companies’ long delay in compensating our students and their families for the cancelled trips to Europe last March,” superintendent Patrick Bocking told Coast Reporter following an update to the District Parent Advisory Council on Sept. 1.
“We want this resolved quickly both for the current situation and also for the reassurance for our community to have confidence in future international trip planning.”
Parents are also frustrated. Amy Robinson’s son, now in Grade 12 at Elphinstone Secondary, worked part-time to afford his trip.
“It’s just a very frustrating situation. That’s why we buy insurance, to protect us from these sorts of things,” she said.
The trips – two to Italy and Greece and one to Germany, Poland and the Czech Republic – involved 62 students and parent chaperones, each paying about $4,000 and $5,000.
Those trips, organized through travel company Explorica, never went ahead as planned.
On March 3 the district announced it had cancelled all overseas travel for the remainder of the school year because of the spread of COVID-19 and uncertainty around travel advisories.
“The district took early action to cancel the trips in light of the pandemic. We took this action based on the insurance clause which indicates that compensation would be paid to families if the district cancelled the trips,” Bocking told Coast Reporter.
Another trip, to Russia, was organized independently by an Elphinstone Secondary teacher and went ahead, but only after parents signed a waiver releasing the school district of any liability. The seven students were forced to return home early.
As for the 62 people involved in the three cancelled trips, Bocking said Explorica is “working with legal support to move the insurance companies forward, but so far, in spite of many appeals from parents and the district, our families are still not compensated.”
Explorica resold insurance policies to families brokered through Trip Mate, with Arch Canada and Old Republic Insurance Company of Canada as underwriters depending on the time of their purchase.
Because the policies are in the travellers’ names, the district can’t act on behalf of the parents and students.
The district has been in regular contact with Explorica and has been relaying information to families, said Bocking, adding the delayed compensation is “particularly disheartening” because students had fundraised, worked part-time jobs and were supported by their parents.
Robinson hopes her son gets his money back in time for spring graduation. “It’s absolutely heartbreaking because my son worked very hard for this money himself. It’s a huge loss to him and it’s a loss I can’t repay him for.”
Families from across Canada have been raising the alarm about the delayed claims payments for tours purchased through Explorica with Trip Mate. Explorica says thousands of customers have been affected.
In a statement, Trip Mate said because “the underwriters are independently processing the claims internally, Trip Mate does not have any control over the status of the claim determination. Trip Mate is not an insurance company and the responsibility for paying these claims lies with the relevant underwriter, not Trip Mate.”
Explorica, meanwhile, told Coast Reporter in an emailed statement it had “recently emailed each Explorica Canada customer to update them on our recent steps.”
A Sept. 23 social media post by the company with “latest customer information” that links to an FAQ page indicates the company has “fulfilled its portion of refunds” and has sent all information to the underwriters to process claims. “Like everyone involved, we want this resolved as soon as possible and are doing everything in our power to help.”
Explorica says the underwriters “are attempting to use the unique circumstances around COVID-19 to redefine their rights and obligations under these travel policies and shift the losses of this pandemic back onto [the travellers].”
The company is working with the Travel Industry Council of Ontario, with which it is registered, “to drive towards a solution for all customers to receive their insurance claims as quickly as possible.”
In a statement, Arch Canada told Coast Reporter the company “has a thorough review process and places priority on the fair resolution of claims once all required documentation is received.“
The company expects to contact all policyholders who filed a claim in connection with an Explorica tour within the next two weeks and can be contacted at [email protected]. “We recognize this has been a frustrating process for the individuals who purchased trip insurance and appreciate everyone’s patience as we work towards resolving the claims.”
Old Republic Insurance Company was contacted but did not provide comment in time for Coast Reporter’s print deadline.
