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The consumer purchased a new travel trailer and at the same time purchased a mechanical breakdown policy effective for 72 months. Additionally, the travel trailer came with a one-year manufacturer warranty. As per the new business application, both policies became effective on the same day in 2024, however the expiry was in 2031 meaning 84 months, and not 72 months as per the application.
The consumer disagreed with the policy effective date of the mechanical breakdown policy given the manufacturer provided a one-year warranty.
He wanted to cancel after the one-year manufacturer warranty ended and before he felt the mechanical breakdown policy began, seeking a full refund.
The insurer advised other provisions were in effect at policy purchase and that a refund was not possible.
GIO noted that there was ambiguity in the contract and that the insurer should reconsider.
After review, the insurer was willing to resolve the issue and agreed to refund the full premium to the consumer.
GIO is an independent body set up to help Canadians find a fair resolution to disputes with insurance providers. GIO can provide advice on dealing with your insurance company as a first step. If you are not satisfied with the decision from your provider on your claim, GIO can help resolve your claim.
If you’d like to submit a claim visit here.
