March 14, 2022 – Investigation Closed, Lawsuit Settled
A lawsuit filed against Travelex Insurance Services Inc. and Transamerica Casualty Insurance Company over the allegations detailed on this page has settled. According to the suit, Travelex and Transamerica wrongfully retained the portion of insurance premiums paid for post-departure benefits for travelers who canceled their trips.
The deal will establish a nearly $3.3 million fund from which class members – that is, those covered by the suit – will automatically receive their share of the deal without needing to submit a claim form. It is believed that more than 105,000 people are entitled to money under the deal, which will provide a percentage of premiums paid, with a minimum payment of $5.00.
The settlement covers all individuals in the United States who have been identified by Travelex and Transamerica as insured under a single-trip travel protection plan purchased between January 1, 2014 and December 31, 2017 and for whom a claim for trip cancellation benefits was initiated. Those eligible for compensation likely received a notice via regular mail or email with information on the settlement and their legal rights. (The notice may have looked something like this.) Individuals who were not notified but believe they are covered are encouraged to contact the settlement administrator here.
The deal received final approval from the judge on September 22, 2021. Generally speaking, payments for class action settlements are typically distributed after a deal receives final approval and any appeals are resolved in favor of the settlement.
For more information, visit the official settlement website here.
At A Glance
This Alert Affects:
People who purchased certain travel insurance plans and canceled their trips before departing.
What’s Going On?
Attorneys are investigating whether travelers who canceled before their scheduled departure dates are owed a refund for part of their insurance coverage.
Which Part of Their Coverage?
The part of the insurance policy that was meant to cover post-departure risks (such as lost baggage and medical emergencies) and was never provided.
Attorneys working with ClassAction.org are looking to hear from people who purchased certain travel insurance plans and canceled their trips before departing.
They’re investigating whether travel insurance companies owe refunds to customers for insurance coverage they paid for but never actually received.
You may be able to take legal action to recover part of the cost you paid for your insurance.
What Travel Insurance Plans Are Being Looked Into?
Attorneys are specifically interested in speaking with travelers who purchased travel insurance plans that were issued by:
Travelex Insurance Services Inc.
Transamerica Casualty Insurance Company
Berkshire Hathaway Specialty Insurance
Generali Global Assistance, Inc.
How Could I Be Owed a Refund?
Travel insurance plans are meant to cover risks such as trip cancellations, trip interruptions, medical emergencies and lost baggage. These risks can be divided into two categories – those that may occur before departure, such as a cancellation, and those that occur post-departure, such as lost baggage.
If a traveler cancels a trip before departing, he or she has paid for insurance coverage for the entire trip while the insurance company has only assumed the risk for part of the trip.
Attorneys believe that travelers who cancel should receive refunds for the post-departure insurance coverage that was included in their policies but was never provided.
Travelex and Transamerica are already facing a proposed class action lawsuit alleging that travelers who canceled their trips are owed refunds for the part of the premium that was paid for post-departure risks.
How Can a Class Action Lawsuit Help?
A class action lawsuit, if successful, could repay customers for the cost of post-departure travel insurance that was never provided but was included in the price of the policy. It could also force travel insurance providers to change their refund policies.