18 November 2008

Warning issued after travel insurance scam comes to light

EssentialTravel.co.uk has issued a warning to holidaymakers after identifying a possible holiday insurance scam.

It is advising anyone who took out a travel insurance policy between April 1 2004 and November 20 2005 that if they receive a letter from Blue Swan Travel stating that they owe the company money, they should seek advice before parting with any cash.

Between those dates, a number of travel insurers, including EssentialTravel.co.uk, sold travel insurance policies from underwriter Blue Swan Insurance Jersey Ltd.

Blue Swan Insurance Jersey Ltd subsequently went into receivership and all policies and outstanding claims effectively became null and void.

But EssentialTravel.co.uk said it has recently become aware of some activity by a claims company associated with Blue Swan Insurance Jersey Ltd.

This company is registered as ATM Travel Services Ltd and trading under the name Blue Swan Travel.

EssentialTravel.co.uk understands that Blue Swan Travel is writing to Blue Swan Insurance Jersey Ltd claimants, requesting money associated with claims made on their insurance policies.

Ã¢â¬ÅâœMany of the former policy holders are vulnerable pensioners, and in some cases we understand that the sums being requested are in excess of Ã£10,000,Ã¢â¬~ it said in a statement.

Ã¢â¬ÅâœEssentialTravel.co.uk has been informed of at least one pensioner who has paid the requested amount.Ã¢â¬~

Anyone who receives a letter from Blue Swan Travel, or any debt collection agency purporting to act on their behalf, should seek advice before sending any money.

They should contact EssentialTravel.co.uk or immediately refer the matter to Consumer Direct, the national helpline run by Trading Standards, on 08454 040506, www.consumerdirect.gov.uk.

By Bev Fearis