MPs demand travel insurance shake-up
The Treasury Select Committee has criticised exclusion clauses ‘buried’ in insurance policies sold by travel agents.
MPs weighed into the debate over regulation of travel insurance sales by calling for tougher rules.
Policies purchased at the same tie as a holiday – so-called bundled insurance policies – often create more problems than those bought separately because people do not look at the detail so carefully.
Treasury committee chair John McFall MP reportedly said: “All too often, exclusions are buried in the small print of insurance policies.
“Holidaymakers are risking damage to their health or considerable financial loss if they require treatment while abroad or repatriation to the UK.”
But Association of British Insurers director of general insurance Nick Starling said the risk to consumers was low, pointing out that only 1,700 compliants were received by the Financial Ombudsman last year.
Around 20 million people bought travel insurance in 2006, worth around £670 million.
by Phil Davies
Phil Davies
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