Travel agents 'mis-sell insurance'

Not having proper insurance can be very costly

UK holidaymakers who fall ill abroad could face high medical bills due to the mis-selling of insurance by travel agents.

An investigation carried out by the Consumers' Association found that travel agents failed to explain important small print to holidaymakers.

Surely it is not too much to ask that agents take thirty seconds to explain that asthma is considered a pre-existing condition and is unlikely to be covered

Louise Hanson
Consumers' Association

The vast majority of travel agents also failed to explain to customers what travel insurance did or did not cover.

The results of the investigation follows a government announcement that the travel insurance market is to be regulated from 2005.

Mystery shopped

The Consumers' Association visited 28 UK travel agents and found that only one explained the content of the travel insurance on offer and asked if there was a pre-existing medical condition which could make any cover purchased invalid.

The big High Street travel agents - Going Places/My Travel, Lunn Poly, Thomas Cook and Travel Choice - were found at fault.

Pre-existing medical conditions are excluded in many travel insurance documents.

Exaggerated claims

In addition, the Consumers' Association found that agents exaggerated the insurance cover on offer.

Typical comments made include that the medical cover on offer was "unlimited" and would "cover you on every single occasion."

When questioned about the findings, a Thomas Cook spokesperson told BBC News Online.

"We take travel insurance very seriously and encourage staff to go through insurance with customers.

In addition each customer is given a booklet outlining what the insurance covers, this way they are made aware of medical exclusion clauses at the time of purchase. Customers have ten days to cancel and the final onus is on them."

In response, Louise Hanson, Senior Public Affairs Officer at the Consumers' Association told BBC News Online.

"Surely it is not too much to ask that agents take thirty seconds to explain that asthma is considered a pre-existing condition and is unlikely to be covered - with something as serious as this you can't just leave it to consumers to trawl through the small print."

New Rules

The Treasury announced on Monday that travel insurance would be regulated by the Financial Services Authority from 2005.

The new regulations will govern the travel insurance sales process and proper disclosure of clauses.

However the Treasury failed to make clear whether insurance sold through travel agents would fall under the power of the regulator.

Ms Hanson said that the Treasury needed to clear up the confusion.

"With 85% of insurance sold through agents not to apply regulation to them would be strange."

Your Comments

As an ex-manager of a well know high street multiple, I can only pray for the demise of such establishments. The staff in general are absolutely clueless when it comes to general geographical knowledge, disinterested in the job and would have problems discussing anything that wasn't spelt out on the CRS screen in front of them. As they are paid less than a supermarket assistant, this is hardly suprising. Asking them to read through a complicated insurance policy booklet and highlight possible holes in the cover, when the issuer will have gone to the utmost to disguise them would be a non-starter. Far better for people to buy insurance from an insurance company. Travel agents make more profit on insurance than on the holiday itself.
Rob , UK

I get intensely irritated by companies virtually insist that you take their insurance. I recently booked a holiday in Ireland where the company refused to accept the booking without including their insurance on the invoice. I needed to provide proof that my annual family cover was of "equal or better standard" to avoid unnecessary payment. I fully agree that adequate insurance is extremely important but it is the responsibility of the traveller. The hard selling of insurance by travel agents at vastly inflated premiums is, while no doubt strictly legal, in my mind highly unethical.
Eric Longstaff, UK

I've had a camera stolen in Tenerife and a new suitcase badly damaged between spain and gatwick. I was silly enough to think my insurance would cover me. I was left feeling it was my fault for going!! Not only do they charge too much, they don't cough up anyway.
Alan, UK

I think this is an issue that people need to be aware of, Luckily I am an experienced traveller and am always really careful about having enough and the right insurance, more so now after I have had to claim after I was ill on a trip to the US, it all worked out fine and I only had to pay the £40 excess on the insurance. I have no idea what the final cost would have been as they all charge individually, i do know that just going into the ER (I was there around 4 hours) cost upwards of $600. It is so important to get it right and I would urge anyone to read the small print or shop around, you don't have to take the insurance that is recommended by a travel agent or by the brochure you are booking from. I would also suggest that insurance policies sold by supermarkets should be avoided they are expensive and often don't cover everything that needs covering. As for Asthma being a pre-exisiting condition, its true but if you tell the insurer about it and usually have to sign a disclaimer its no problem, I myself have a severe nut allergy and although its not a problem (I can avoid what needs avoiding) I signed a disclaimer and my insurer/carrier was happy. I have had many trouble free years of travel and hope for many more!
Liz, Uk

I can only agree with Rob's prayer for the demise of the high street agents. I no longer go for the mass-market package holiday, so don't go in them. Partly because of the hard sell on insurance. The other money maker for them is "excursions", again hard sell. I now only stick to independent agents, or deal direct, and now find I am asked if I already have insurance and a "yes" ends it right there and then.
Lee, Scotland

Having spent more than 10 years in the insurance claims industry dealing with travel along with other policies, I would always advise people to READ the book. At the end of the day you are responsible for your coverage, if you have questions or dont understand then ask. People will not spend the time to check they are covered, and having worked with a variety of policies, if Louise Hansen can provide a decent overview in 30 seconds, I would be stunned. These people are not trained insurance professionals and frankly should not be selling insurance unless they are.
Fiona Morales, USA (British Expat)

I noticed the small print about pre-existing conditions in my holiday insurance and contacted the agent. "I'm pretty sure that asthma will be covered" I was told. When I pushed further I was advised to contact the insurer myself! They clearly were not interested in finding out what their 'recommended' cover actually provided.
Tim, UK

I don't have any experience with mis-selling of insurance myself as I luckily never had to claim. But I only buy insurance from banks or insurances which are usually much cheaper (for the same cover).
Volker, England (ex Germany)

Have you been caught out by the travel insurance trap, do you think mis-selling is going on? Please send us your comments

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