Emily Sortor  |  July 15, 2019

Category: Legal News

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woman purchased travel insurance through AllianzA class action lawsuit says Allianz and Jefferson Insurance Co. wrongly deny travel insurance claims and effectively sell bogus policies.

The Allainz class action lawsuit was filed by Sarah Alhassid, who recently amended her complaint against the two insurers.

In her amended complaints, she seeks to represent a Class of all consumers who purchased travel insurance from AGA Service Co. She says that AGA Service Co. does business under the brand names Allianz Global Assistance and Jefferson Insurance Co.

The AGA insurance claim denial class action lawsuit argues that the companies make a policy of wrongly denying travel insurance claims in an effort to maximize their own profits.

Alhassid’s lawyer told Law360 that “It is a business decision for [the companies] to deny a large percentage of claims, because they are betting that the purchasers of this travel insurance, when their claim is denied, will not go out and hire a lawyer to pursue the claims. In this case, they were wrong.”

The Allianz class action lawsuit says that Alhassid purchased travel insurance from Allianz for $21 for a flight from Miami International Airport to Las Vegas on Sept. 7, 2017.

Allegedly, the flight was canceled only four hours before it was scheduled to depart. Alhassid says that this cancelation was caused by an impending category 5 hurricane.

The travel insurance class action lawsuit asserts that Alhassid filed an insurance claim, but was denied. Allegedly, the denial letter said “travel insurance doesn’t cover everything. It’s designed to protect you when there’s a sudden, unexpected problem or event. Specifically excluded is any problem or event that could have been reasonably foreseen or expected when you purchased your plan.”

However, Alhassid argues that travelers purchase travel insurance to protect against things that are foreseeable, like a cancelation by an airline. The plaintiff says the company is aware that this is why travelers purchase trip insurance.

The Allianz class action lawsuit asserts that Alhassid was financially injured by Allianz because she could not get another flight and had to incur expenses to cover a hotel room, gasoline, food, and mileage on her car to drive to get out of the storm. This reportedly cost her around $6,500.

She seeks damages for herself and other people who were affected by AGA’s alleged conduct. She argues that many other travelers were similarly affected, as the company makes a policy of denying reasonable insurance claims.

The plaintiff alleges breach of contract, saying that Allianz denied her claim, and possibly many other claims, though the cancelation was one of the events covered in her policy. She also says that the company may have violated state law that requires insurers to make a “good faith attempt” to settle claims with policyholders when they have an obligation to do so.

Alhassid is represented by Reuven Herssein and Maury Udell of Herssein Law Group.

The Allianz Travel Insurance Claim Denial Class Action Lawsuit is Sarah Alhassid v. AGA Service Co., et al., Case No. 2018-016145-CC-05, in the County Court for Miami-Dade County, Florida.

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16 thoughts onAllianz Class Action Says Travel Insurance Policies Are Bogus

  1. David Alvarado says:

    Same for me: re COVID. I almost never use travel insurance, and the one time I do, a pandemic hits the world, governments tell us not to travel months after purchasing the ticket, and when I turn to the insurance policy, they tell me I should have known not plan travel.

  2. Tommy Norris says:

    How do I join this please add me as well. I had to leave china early because of COVID-19 and they said I wasn’t covered even though in my policy it says trip cancellation coverage.

  3. Linda Galloway says:

    I would love to join this lawsuit. Coronavirus has been a real hassle to many. Our trip was cancelled by the cruise line. We have been lucky to get most of our money back, Tried to just get a refund of the insurance cost. It is pretty bad that what is suppose to protect your investment is the only part of our expenses that is not being reasonable with this problem.

    I have bought this insurance for many trips in the past. I have never needed it and now they won’t refund my money.

    1. Linda Ellman says:

      Hello Linda Galloway,

      Have you heard anything about joining the class action? We had a trip, insured by Allianz that was completely canceled due to Covid19. We have been informed we can get nothing back and when you go to Allianz website, it states right at the top that Covid19 is not covered. We are out 3K for a trip to Punta Cana that we could not go as the borders were closed and flight cancelled. We didn’t cancel, they couldn’t provide the goods sold to us. We too would like to join this suit to get our money back.

      Thank You,
      Linda Ellman

  4. Edwin says:

    Please add me. I would always buy travel insurance. The few times that I actually needed it, I was denied.

  5. Katherine D Gibson says:

    I have purchased Allianz Travel Insurance of which I have made one claim to no avail as they found undisclosed reasons not to reimburse my travel fees.

  6. Mariano Rivera says:

    Please Add Me

  7. Carl Nestor says:

    Please add me. These are con men.

  8. Penney McCormick says:

    I too had a large policy for travel that was denied. Please add me.

  9. Claire Mallet says:

    I had an Allianz policy–I took forever to get reimburse but not for all expenses.

  10. Michael Cardona says:

    Please add me

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