Calls for single-trip travel insurance regulation
A new report from a Treasury committee of members of Parliament is asking for new rules on travel insurance to make exclusions in travel policies clearer so that consumers can more clearly tell whether those policies meet their needs. The study found that up to ten million UK residents last year would not have covered by their travel insurance if they had been injured in a terrorist attack while on holiday. Committee chairman John McFall MP said that literally millions of people are being sold travel insurance policies that do not meet their needs.
In addition, consumer group Which? called for single trip travel insurance to be put under the same regulatory standards as standard travel insurance. Currently, single-trip travel insurance is not regulated by the Financial Services Authority (FSA), which does regulate annual travel insurance. Those selling annual travel policies are required to disclose the details of their policies and are subject to fines if they do not. Sellers of single-trip insurance are not subject to such requirements. A researcher for Which? said that there is no reason why travel agents who sell single-trip insurance should not be regulated just like other sellers of travel policies.