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Zurich Insurance Overview:
- Who: Insurance giant, Zurich PLC, is facing a £10 million claim from a student travel company.
- Why: The student travel company says that it was forced to pay millions in refunds for cancelled trips during the COVID-19 pandemic, but its insurer Zurich wants those claims capped, according to court documents
- Where: The insurance company is facing claims from the UK-based student travel company in London’s High Court.
Zurich PLC is attempting to dodge £10 million in insurance claims by student travel company World Challenge Expeditions, arguing it should pay out less than £150,000 under the terms of its policy, according to documents filed in High Court and recently made public.
The insurance company is fighting a lawsuit filed by World Challenge Expeditions in May alleging Zurich is responsible for millions in refunds the travel company paid for COVID-19 cancelled trips, reports Law360. In a statement of defense, Zurich claims that its insurance policy is limited to refunds for airfare and hotel costs, not direct payments made by World Challenge to student travelers.
In sum, claimed the insurance company, World Challenge is only entitled to £143,397.
Zurich further argued that the COVID-19 travel cancellations should be considered a single event, under the terms of World Challenge’s insurance policy, capping the claim at £100,000.
Zurich Insurance COVID-19 Cancelled Travel Claims
World Challenge contends that Zurich should be on the book for £10 million in trip refunds. In its lawsuit, the student travel company reportedly details the extensive cancellations that took place starting in January 2020 for trips to Wuhan, China, ground zero for the coronavirus pandemic.
The student travel company says that it was forced to cancel and provide refunds for most trips scheduled throughout 2020 due to COVID-19 restrictions. World Challenge joins the growing chorus of businesses claiming that Zurich and other companies are refusing to pay out claims under their business interruption insurance policies.
The UK travel industry has been particularly hard hit by losses during the ongoing pandemic. In April, travel agents lodged a class action lawsuit against their insurance providers demanding that they pay out their business interruption claims.
In addition, UK citizens who had their flights cancelled due to the COVID-19 pandemic but were unable to get a refund are participating in a group action to try to recover money from the airlines.
Did you have to cancel your travel plans because of COVID-19 restrictions? Did you get a refund? Tell us about your experience in the comment section below!
The plaintiff is represented by Daniel Shapiro QC of Crown Office Chambers, instructed by Fenchurch Law Ltd.
The Student Travel Cancellation Lawsuit is World Challenge Expeditions Ltd. v. Zurich Insurance PLC, Case No. CL-2021-000322 in the Commercial Court of the High Court of Justice of England and Wales.
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