Thursday 6th July 2006
A damning warning about holiday insurance sold by travel agents has been released today (July 6th) by Which?.
The consumer magazine has found that not only are travel agents more expensive than other providers, such as banks and insurance companies, but they do not always ask the right questions when selling holiday insurance.
There are three procedures that should be followed in order to ensure a policy is suitable for a potential customer, says Which?; explanation of the cover, a clear explanation of exclusions and an enquiry into pre-existing medical conditions.
None of the agents investigated followed the second rule by making clear what the policy did not cover and many failed to follow two of the three procedures.
Which? also points out that since banks and insurers are regulated by the Financial Services Authority (FSA), there is easy redress for consumers should things go wrong. The same does not apply for travel agents.
"Buying holiday insurance from a travel agent may seem the easy option, but youll pay more and you dont have the same protection if youre sold an unsuitable policy," said Which? editor Neil Fowler.
The magazine is now calling for the government to include travel agents in travel insurance regulation.
"Theres no reason why travel agents should be excluded from insurance regulation. People should have the same protection and peace of mind on holiday regardless of where theyve bought their travel insurance," Mr Fowler added.
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