Mis-selling of travel insurance widespread
Research from Sainsbury’s Travel Insurance has revealed that some travel agents have been misleading holidaymakers when selling the insurance.
In a survey of around 2,150 people completed in November, 5% of respondents claimed they were told if they wanted to buy a holiday they also had to buy the travel cover supplied by their agent.
Furthermore, 16% of respondents who had bought travel cover in this way claimed they were not asked about any pre-existing medical conditions, and 17% said their travel agent had not informed them of the policy cover and exclusions.
Regulation of the sale of connected travel insurance changed on 1st January but Sainsbury’s claims that over 400,000 consumers who bought a holiday abroad during 2008 could have been victims of mis-selling.
New regulation from the Financial Services Authority now means that travel firms authorised to sell insurance have to be able to demonstrate that they are fit and proper and appropriately resourced.
Staff need to be competent and able to give customers clear information about services and products, so they can make informed choices.
Authorised firms also need to have systems in place that allow consumers to seek redress if things go wrong.
Category: Financial Services Authority News, Insurance News, Travel Insurance News
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