The suggestion, reported recently (Features, 9 February), that travel insurers should add a levy to policies to fund a scheme to compensate travellers injured by terrorist attacks abroad is unnecessary for two reasons.
First, in response to customer demands, travel policies are increasingly providing cover for medical treatment and emergency repatriation following a terrorist incident as standard. Customers who want this cover should shop around for it. They should also consider the contributions other insurances may make, such as life cover.
Second, travel insurance is already subject to insurance premium tax at 17.5%, which policyholders pay. If any fund is set up, it should be funded from this tax, not by imposing more costs on the customer.
Head of property and creditor