MPs call for travel insurance crackdown
scotsman.com
A parliamentary committee has called for a crackdown on travel industry insurance after they found millions of British holiday-makers were left unprotected in the event of a terrorist attack.
It said the scope of the Financial Services Authority should be extended to cover the "bundled" travel insurance market, such as travel agents who sell the policies alongside flights and accommodation.
Around 10 million Britons who travelled abroad last year were not covered for medical expenses in the event of terrorist incidents, according to the report from the Treasury Select Committee.
Committee chairman John McFall said: "This is an astonishing number of people to have been exposed to this seriously frightening chance of loss in this way.
"It became clear during our inquiry that there are huge numbers of people -- millions literally -- who have been sold and are at risk of being sold in the future travel insurance policies which do not meet their needs."
He said there was an "insufficient awareness" among consumers of exclusions to travel insurance policies, in areas such as terrorist acts and pre-existing medical conditions, including pregnancy.
"All too often, exclusions are buried in the small print of insurance policies," said McFall, who called for policies to be written in "plain English" with "clear and prominent" information on exclusions.
Britons go on more than 60 million visits abroad each year, of which around two-thirds are holidays, the report said.
Some 20 million travel insurance policies are sold each year.
Consumer group Which? said it was a "damning report, reiterating the urgent need for consistent regulation of travel insurance".
Principal researcher Mike Naylor said: "Which? 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."
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published Feb 26, 2007
