The Uk Insurance

Crackdown on UK travel insurance cover

Posted in Insurance News

The MPs had called for a crackdown on travel insurance today after coming to know that over 10 million holiday makers in the year 2006 were left without having a medical cover in their UK travel insurance policies in the event of a terrorist attack.

In its latest report, the Treasury Select Committee said that in the year 2006 a very large number of UK citizens who traveled abroad were sold the UK travel insurance policies as per their needs and requirements. It said that there was considerable reason to believe that there was consumer detriment in the UK travel insurance market and there was an urgent need for a greater regulation on the policy cover offered by the travel agents and tour operators.

Figures show that over20 million people buy UK travel insurance cover every year. However, as per the report, many travelers are sold policies that are not suitable for them and do not provide them adequate cover, leaving them helpless if they meet an accident abroad or experience some problem while traveling.

The committee also pointed out that there was a low level of awareness among the travelers about the exclusions in their policies related to terrorist attacks. A large number of travelers last year would have been left without any cover in case of a terrorist attack.

John McFall MP, Chairperson, Treasury Committee, said, He added: ‘All too often, exclusions are buried in the small print of insurance policies. Holidaymakers are risking damage to their health or considerable financial loss if they require treatment while abroad or repatriation to the UK.’

He added, ‘There can be no doubt that consumers are suffering a detriment here, and that o vercoming this is a mammoth challenge for the insurance industry, for all those who sell travel insurance and for those who regulate them.’

Mike Naylor, Principal Researcher at Which?, said: ‘This is a damning report reiterating the urgent need for consistent regulation of travel insurance.

‘Our research shows that travel insurance is being mis-sold and consumers aren’t being given the appropriate information.’

‘There is no reason why travel agents should be excluded from regulation. People should have the same protection and peace of mind on holiday regardless of where they buy their insurance.’

A spokesperson at the Treasury said, ‘Last year the Economic Secretary launched a review of travel insurance, including a consultation which closed this week.

‘We will study the results of this consultation and the Treasury Select Committee report and announce our policy intentions in the coming months.