Last updated on June 18th, 2020
One of the biggest concerns people have on their mind when it comes to buying a proper health insurance plan is a refund policy.
In a world of private medical emergency coverage for visitors, workers and immigrants to Canada as well as specialized programs such as Super Visa and IEC, there are a few ways insured person is entitled to receive a certain refund amount.
What is a Refund?
A refund refers to an amount of paid insurance premium that an insured person can obtain for the unused portion of their coverage period. Generally, insured people can receive a refund in case they leave Canada prior to the coverage expiry date or when they receive government insurance in a province of their residence. In addition, in order to be eligible for a refund insureds must not have made any claims during the period of coverage.
You can also get a refund in case you are unable to make the trip to Canada at all, which usually results in a 100% refund of your insurance premium less the cancellation fee, if any.
Consequently, there are 2 main types of premium refund – Full and Partial.
– Full Premium Refunds:
In most cases, full refunds of paid insurance premium are available when insurance policy is cancelled due to non-travel to Canada including denial of visa or a change of travel plans. Please note that your official refund request with any required documents supporting reasons for policy cancellation must be received before the start date of your coverage commences.
It is also important to note that many insurance providers have a Right to Review Policy provision that allows you to cancel your insurance and receive a full refund within 10 days of purchase as long as it is before the effective date of your policy.
Moreover, depending on your visa type as well as an insurance provider you have a policy with, refund conditions may differ.
For example, all Super Visa applicants are required to have insurance that is valid for 1 year and provides at least $100,000 coverage at the time of application. Once the visa is granted and insured person decides to cancel the policy due to not travelling to Canada at this time, many insurance companies may apply a hefty fee ranging from $150 to $250 for cancellation or deny such cancellation requests altogether.
On the other hand, if your travel visa application is denied by IRCC, you can cancel your insurance and receive a full refund regardless of your insurance provider.
Please note that a standard cancellation fee that usually ranges from $25 to $50 per person insured may apply.
– Partial Premium Refunds:
Unlike full premium refunds, there are different circumstances, under which you can receive a partial reimbursement of paid premium.
One of the most common reasons is an early departure from Canada. More specifically, if insured person does not stay in Canada for the entire coverage period and leaves prior to the expiry date of their policy, they are eligible for a partial refund. The refund amount will be based on the number of covered days or months left unused following departure from Canada, provided that there were no claims made.
In order to receive a refund for early departure, an insured person will need to send a copy of the boarding pass to the issuing agency along with a completed cancellation form, whenever applicable.
Furthermore, second most common reason for policy cancellation and refund is when insured people become eligible and covered under any provincial insurance plan in Canada. For a refund due to this reason, you would need to submit a copy of the healthcare card and/or copy of the program enrollment letter that shows the date your provincial insurance has begun. The amount of refund will be calculated from the date following the start of your government insurance. Please note that you must not have made any claims in order to be eligible for such refund.
A cancellation fee that ranges from $25 to $50 may apply depending on the insurance provider when cancelling your policy due to both early departure and coverage under any government insurance plan in Canada.
Canadian Insurance Providers and Refund Policies:
We already noted that while most Canadian insurance providers have similar refund policies, they are not identical. Below, we’ve come up with a list of refund policies from different insurance providers we are working with.
Please note that the best way to learn about refund conditions is by referring to the Policy Wording for an insurance policy of your choice.
1) The Destination Travel Group / Destination Canada:
You can get a refund when:
a) You cancel within 10 days of purchase before insurance begins (No fee)
b) You are unable to travel to Canada including refused visas and medical emergencies when cancelling before policy starts (No fee)
c) You depart from Canada early ($25 fee)
d) You become covered by a provincial insurance plan in Canada ($25 fee)
Standard cancellation fee of $25 per policy will apply unless specified otherwise, provided you send appropriate proof and have no claims on file.
If you choose to cancel insurance that is 1 year in duration without an eligible reason such as non-travel to Canada due to an emergency or visa denial, you can proceed with cancellation of the coverage without the proof, in which case, Destination Canada will charge $150 fee for each policy being cancelled.
Click to learn more – Destination Canada Insurance
2) Allianz Global Assistance:
You can get a refund when:
a) You cancel within 10 days of purchase before insurance begins (No fee)
b) You are unable to travel to Canada including refused visas and medical emergencies when cancelling before policy starts (No fee)
c) You depart from Canada early (No fee)
d) You become covered by a provincial insurance plan in Canada (No fee)
No cancellation fee unless specified otherwise, provided you send appropriate proof and have no claims on file.
Click to learn more – Allianz Global Assistance
3) Travelance:
You can get a refund when:
a) You cancel within 10 days of purchase before insurance begin (No fee)
b) You are unable to travel to Canada including refused visas when cancelling before policy starts (No fee)
c) You cancel insurance before it starts if you become ineligible for coverage (No fee)
d) You depart from Canada early ($50 fee)
e) You become covered by a provincial insurance plan in Canada ($50 fee)
f) You cancel insurance but remain in Canada ($250 fee)
Standard cancellation fee of $50 per policy will apply unless specified otherwise, provided you send appropriate proof and have no claims on file.
If you choose to cancel insurance without an eligible reason such as non-travel to Canada due to visa denial, you can proceed with cancellation of coverage but Travelance will charge $250 fee for each policy being cancelled.
Click to learn more – Travelance Insurance
4) GMS:
You can get a refund when:
a) You cancel within 10 days of purchase before insurance begins (No fee)
b) You are unable to travel to Canada including refused visas and medical emergencies when cancelling before policy starts (No fee)
c) No travel has taken place but you send your request after policy is in effect ($40 fee)
d) You depart from Canada early ($40 fee)
e) You become covered by a provincial insurance plan in Canada ($40 fee)
Standard cancellation fee of $40 per policy will apply unless specified otherwise, provided you send appropriate proof and have no claims on file.
Click to learn more – Destination Canada Insurance
5) INGLE Assurance:
You can get a refund when:
a) You cancel within 10 days of purchase before insurance begins (No fee)
b) You are unable to travel to Canada including refused visas when cancelling before policy starts ($50 fee)
c) You depart from Canada early ($50 fee)
d) You become covered by a provincial insurance plan in Canada ($50 fee)
Standard cancellation fee of $50 per policy will apply unless specified otherwise, provided you send appropriate proof and have no claims on file.
If you choose to cancel insurance without an eligible reason such as non-travel to Canada due to an emergency or visa denial, you can proceed with cancellation of the coverage without the proof, in which case, INGLE will charge $250 fee for each policy being cancelled.
Click to learn more – INGLE Assurance
6) Tugo:
You can get a refund when:
a) You cancel insurance anytime before insurance begins (No fee)
b) You cancel within 10 days of purchase even after insurance begins (No fee)
c) You cancel insurance after it begins and after 10 days of purchase (within 30 days of effective date) ($25 fee)
d) You depart from Canada early ($25 fee)
e) You become covered by a provincial insurance plan in Canada ($25 fee)
Standard cancellation fee of $25 per policy will apply unless specified otherwise, provided you send appropriate proof and have no claims on file.
Click to learn more – Tugo Insurance
7) Manulife:
You can get a refund when:
a) You cancel insurance anytime before insurance begins i.e. visa denial, etc. (No fee)
d) You depart from Canada early (No fee)
c) You become covered by a provincial insurance plan in Canada (No fee)
No cancellation fee unless specified otherwise, provided you send appropriate proof and have no claims on file.
Click to learn more – Manulife Insurance
8) 21 Century – Monthly & Upfront Payment Plans:
You can get a refund when:
a) Your travel visa application is denied (No fee)
b) You leave Canada prior to the expiry date of your insurance policy ($25 fee)
c) You formally withdraw your visa application (No fee)
d) You become covered by a provincial insurance plan in Canada ($25 fee)
Upfront Payment Plan: Standard cancellation fee of $25 per policy will apply unless specified otherwise, provided you send appropriate proof and have no claims on file.
Monthly Payment Plan: Standard cancellation fee of $25 per policy will apply unless specified otherwise, provided you send appropriate proof.
Click to learn more – 21 Century Insurance
#insurance
