TORONTO — Ontario Blue Cross has launched what it says is Canada’s first weather-based travel insurance product, introducing a new coverage option that automatically compensates travellers when rain significantly disrupts their trip.
Called Rainy Day coverage, the new offering is designed to address a common travel frustration that has traditionally fallen outside the scope of travel insurance. The parametric insurance product uses automated weather monitoring to determine eligibility for compensation, eliminating the need for travellers to submit claims or supporting documentation.
“We’re turning a common travel frustration into a tangible benefit for travellers,” said Anne-Gaëlle Le Hénaff, Vice-President, Commercialization, Ontario Blue Cross.
The company noted that while conventional travel insurance products protect against major unexpected events that can derail a trip, there has been no mechanism – until now – to compensate travellers when poor weather affects their vacation experience.
HOW IT WORKS
Rainy Day coverage relies on an advanced weather algorithm to automatically monitor weather conditions throughout the trip.
If rainfall at the insured destination exceeds the threshold specified in the policy and all coverage conditions are met, travellers are automatically notified and invited to receive compensation.
Compensation includes:
- $100 per covered rainy day, per contract
- No proof required and no claims to file
- Automatic payment via Interac e-Transfer within two business days
The new coverage is available as an add-on to Emergency Medical Care (EMC), Trip Cancellation and Interruption, and the 3-in-1 Package for trips to Mexico, Cuba, the Dominican Republic, the United States, Canada and Europe. Coverage must be purchased at least 14 days before departure.
For more information, click here.
