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The government has recently announced that it plans to crack down on the travel insurance industry, claiming that millions of people in the UK who travel abroad are being sold travel insurance that does not cover what they need and is in some cases totally inappropriate for them.
According to the government one of the main concerns over the travel insurance being bought by millions in the UK was that in millions of cases it did not provide any cover in the event of a terrorist attack. Officials also stated that consumers were not being given enough information about policies before they were sold.
 However, according to the Association of British Insurers, only a tiny percentage of the complaints that have been received in relation to insurance products actually relate to the mis-selling of travel insurance. A spokesperson for the Association of British Travel Agents (ABTA) said that only 0.016 percent of complaints received in relation to insurance were about the mis-selling of travel insurance, reflecting the ability and skills of travel agents when it came to selling the right insurance policies to travellers.
Sean Tipton from the Association of British Travel Agents was asked whether travel insurance mis-sales were a big issue for the association. He stated: "In terms of if there is a problem here, how big is it? We had just under 18,000 complaints in the financial year 2005 to 2006 regarding any number of different issues. Only three of those related to potential mis-selling of insurance."
Another issue relating to travel insurance came to light in a recent Financial Services Authority survey, which indicated that around a quarter of consumers were under the impression that they had to purchase travel insurance cover from the travel agent through which they booked their holiday, which is not the case. In fact, consumers are advised to shop around in order to find cover that is both suitable and affordable.
Tom Smith
09.03.07
Further Information:
- General Travel Insurance Advice - To the average customer looking for a travel insurance deal they may be bombarded with terminology and information of which they find it hard to take in
- The Cost of Travel Insurance - The big decision concerning travel insurance is the question of what happens if the traveller only goes away for a few days at a time for business or pleasure, but has to pay for the policy for an entire year. Since the price per day ends up being more expensive, the yearly option is usually more affordable.
- Is Travel Insurance Needed? - In the last five years, more and more people are travelling to further distant regions and not buying travel insurance. Is travel insurance needed?
- Do’s and Don’ts of Travel Insurance - Travel insurance is bought by many types of people in different industries. Because travel insurance has more rules and regulations than home or car insurance policies, there are many facts that need to be considered before purchasing travel insurance.
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