Terrorism exclusion remains an issue
Biba has welcomed the publication by HM Treasury of legislation to bring all travel insurance providers under FSA regulation.
Biba Chief Executive, Eric Galbraith, said: “The British Insurance Brokers’ Association has long campaigned for this legislation to protect the 20 million people who buy travel insurance every year.
“It is vital that consumers are protected when they go abroad, that they know what they are buying, and what their travel insurance policies do and don’t cover. We are delighted that BIBA has been invited to join the Treasury’s working group to promote a better understanding amongst consumers of their protection needs before they travel.
“In particular we are delighted that the Treasury has acknowledged the need to ensure that consumers are aware whether or not terrorism cover is included in their policy. Research by BIBA has shown that 49% of travel insurance companies have a total terrorism exclusion and as many as 78% of policies exclude terrorism cover before writing back in some heads of cover. It is essential that consumers are told whether terrorism cover is included in their policy.
“Until this legislation comes into force in January 2009, I would urge all those who are planning holidays for 2008 to buy their travel insurance from a regulated insurance broker.
“Consumers should receive clear and well-informed advice when purchasing insurance, a service which can be best provided by brokers and intermediaries.”