Ontario man left owing $147K after travel insurance claim was denied — the hidden policy clause Canadians need to know

But just two days after the couple hit their resort, Ali’s condition worsened considerably. He suffered multiple seizures, was given urgent care and drifted into a coma.

“At that point, my brain goes numb, and I don’t remember much of anything afterwards,” Ali told the outlet.

Given his condition, Ali was treated in Mexico for eight days, though doctors were unclear about his diagnosis. He was flown back to Canada by air ambulance to resume his medical care — all his bills were paid for.

That is, however, until one year later.

Ali’s claim denied

In 2025, Ali was told his insurance claim under his policy was denied, and as a result, he would be on the hook for $147,502. According to CTV News, an investigation into Ali’s claim was performed and found that his walk-in clinic visit before his trip created a loophole for his coverage — under Manulife’s Global Youth All-Inclusive Policy, travellers are required to be in stable condition for 90 days prior to their departure.

CTV News reached out to Manulife for comment on Ali’s behalf.

“Manulife can confirm that medical records indicate that prior to travel, Mr. Ali was experiencing symptoms and had sought medical care related to a pre‑existing condition. Under the policy, this condition fell within the three-month stability period prior to departure. Since the condition was known at the time of travel based on the prior medical care, this affected how coverage was applied,” a spokesperson told the outlet.

“This situation underscores the importance of understanding travel insurance coverage, as policies contain specific terms, conditions, and exclusions. Manulife encourages travellers to carefully review their policy and share relevant medical information in advance, including if there are any changes since the time of purchase. Our insurance support teams are also available to answer questions to help policyholders have a clear understanding of their coverage,” the company added.

As of the time of writing, Ali’s family has appealed the claim twice with no success, according to CTV.

Don't leave points on the table. Compare Canada's top travel rewards programs today to see which one gets you to your destination faster.

The limits of medical travel insurance

Ali’s narrative points to an issue that some Canadian travellers miss: medical insurance doesn’t cover all types of medical issues while abroad. There are gaps to be aware of.

Common examples of high-risk activities include scuba diving and skydiving. These types of endeavours are not usually covered under traditional travel medical insurance policies, only specialized ones. Travel medical insurance may also not provide coverage for specific destinations, specifically those that have a travel advisory issued by the Canadian government.

Though helpful, medical insurance obtained through a travel credit card also has some shortcomings. It can be common for credit card medical insurance to have coverage caps on the length of a trip, so longer trips may not have insurance for the entire duration. Medical insurance through credit cards typically offers less protection than standalone policies and may require the cost of the trip to be paid for in full by the specific credit card in advance — using points or other payment methods may result in no medical coverage at all.

Employer medical insurance can be more robust than the kind offered through credit cards, but there is some nuance involved. When it comes to emergency out-of-country travel claims, clear communication about the limits of out-of-country coverage is necessary; otherwise, employees could pay out-of-pocket when their insurance lapses.

Regardless of where your medical insurance comes from, Ali’s story underlines an important provision to watch for: pre-existing condition clauses. A pre-existing medical condition is any health issue or injury that you sought attention for prior to your trip. While some policies do cover pre-existing conditions, that is usually with the caveat that the policyholder is “stable” (i.e. no hospitalization, medical procedures, medication or symptom changes related to a health issue/injury) within a certain period prior to the trip.

This provision is what negated Ali’s medical policy, as his insurer viewed his walk-in clinic trip as triggering the caveat for his pre-existing medical condition clause.

“Doctors here say it had nothing to do with the flu or any of the symptoms he represented, but the insurance company is saying we believe there is a connection between the two. That’s the problem,” Martin Firestone, president of Travel Secure Inc., told CTV in an interview.

Is travel medical insurance worth it?

Ali’s harrowing ordeal might be leaving a burning question in your mind: is travel insurance worth the cost? Some Canadians are thinking not.

A survey from TD Bank found that Canadians are cutting costs when it comes to travelling this summer, with 44% of respondents citing higher fuel prices as influencing their decision. As a result, 46% of Canadians surveyed said they were planning to travel without medical insurance — and 29% acknowledged they can only cover $300 in emergency medical costs without insurance.

Is that the right move to make? Experts disagree.

In an interview with CBC News, Will McAleer, executive director of the Travel Health Insurance Association of Canada, pointed to a survey showing that 94% of travel insurance claims are paid.

"The benefits are there for many Canadians when they're purchasing it. It's the unfortunate times when the coverage expectation doesn't line up with the actual wording of the policy," McAleer said.