Outrigger Hotels and Resorts

Published on Thursday, October 23, 2014

Rise in numbers travelling without insurance blamed on Government

ABTA is warning holidaymakers about the dangers of travelling overseas without travel insurance as its latest research shows that 22% of people now travel abroad without cover.

The number of people who admit to taking an overseas trip without travel insurance has risen from 19% this year.

ABTA said over a third (35%) of 16-24 year olds and 36% of 25-34 year olds don't take out insurance.

Many mistakenly believe Government will pay for any treatment, some rely on their European Health Insurance Card but almost a third said they were put off by the cost of insurance.

With comprehensive annual policies available for as little as £60 and the potential for medical costs to run into thousands of pounds, this is very much a false economy," said ABTA.

It claimed take up of travel insurance has declined since the previous Government introduced legislation governing the sale of insurance as an ancillary product in 2007.

"There is no evidence that consumers have benefited from increased regulation," it said. "As such, ABTA continues to argue for the relaxation of these burdensome regulations and is asking the Government to review its position.

"ABTA recently submitted a consultation response to the Treasury calling for the regulation to be repealed and continues to work with the Tourism Minister, her officials and the Financial Conduct Authority, as the industry regulator, to examine ways in which the burdens placed on the industry when selling insurance could be reduced so that insurance is more readily available at the point of sale."

Chief executive Mark Tanzer said: "It is a worrying trend that we are seeing an increase in the number of people travelling overseas uninsured.

"Younger travellers are driving this increase through a mixture of misunderstandings and a desire to save money.

"ABTA and its Members have expressed concerns that the regulations mean fewer travel businesses are selling insurance at the point of sale, and ultimately this appears to have resulted in fewer holidaymakers taking out the appropriate insurance.

"We will continue to make our Members' views clear to Government.  In the meantime, we urge Members to familiarise themselves with their rights and responsibilities in informing customers about travel insurance."


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  • Cost of Insurance

    The Travel Industry has to shoulder part of the blame. The cost of travel insurance when offered when booking is much greater than if one buys direct from the internet. I appreciate all are in it to make a profit. But why is there such a difference for much the same cover?

    By Paul Johnston, Friday, October 24, 2014

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