Manjit and his wife were scheduled to travel overseas when, unfortunately, he was diagnosed with a highly contagious communicable disease. Since it was an infectious disease, and his wife was in close contact, the treating doctor had advised both to self-quarantine.<\/p>\n\n\n\n
As a result, they had to cancel their trip, and a claim was made to their insurer. The insurer repudiated their claim on the basis that the Trip Cancellation coverage is only applicable as a direct and necessary result of the \u2018Specified Cause\u2019 and that self-quarantine related to contagious disease is not covered.<\/p>\n\n\n\n
FINDINGS<\/strong><\/p>\n\n\n\n Based on our review of the policy wordings, we noted that \u2018Compulsory Quarantine\u2019 was not defined in the policy. The dictionary defines \u2018Quarantine as a concept developed by society to protect against the contagious disease outbreak\u2019.<\/p>\n\n\n\n In this case, the complainants were clearly following their doctor\u2019s advice to \u2018self-quarantine\u2019.<\/p>\n\n\n\n OUTCOME<\/strong><\/p>\n\n\n\n Without a clear policy definition of \u2018Compulsory Quarantine,\u2019 the case manager applied the contra proferentem rule and issued a recommendation in favour of Manjit. Contra proferentem is a rule of contract interpretation that states an ambiguous contract term should be construed against the contract’s drafter.<\/p>\n\n\n\n The insurer accepted our recommendation and paid the full claim for the cancellation cost.<\/strong><\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" Manjit and his wife were scheduled to travel overseas when, unfortunately, he was diagnosed with a highly contagious communicable disease. Since it was an infectious disease, and his wife was in close contact, the treating doctor had advised both to self-quarantine. As a result, they had to cancel their trip, and a claim was made […]<\/p>\n","protected":false},"author":1,"featured_media":5410,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[25,27],"tags":[],"class_list":["post-5605","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-case-studies","category-insurance-takaful"],"acf":[],"yoast_head":"\n