Travelling Without Insurance? New FSA Regulations

On January 1, 2009 the Financial Services Authority (FSA) extended the regulation of the sale of travel insurance to encompass tour operators, travel agents, airlines, coach companies and others such as chemists, retails shops, supermarkets and the Post Office.  Companies that specialise in selling travel insurance have been subject to FSA regulation since 2005. 

The Travel Association (ABTA) have expressed concern that people may risk going on holiday without insurance if it is not provided as part of their holiday package – something they may have been accustomed to in the past.  Travel agents and tour operators opting in for the complicated red tape that goes along with being FSA regulated will still offer insurance, but it unlikely that the majority will want the bother.  Under ABTA rules, however, agents and operators are obliged to make their customers aware of the importance of taking out travel insurance, even if they are unable to offer it themselves.

The FSA regulation of travel insurance came about for several reasons, which includes the often inadequate or limited insurance policies offered as part of a package holiday.  Customers were, for the most part, unaware of these inadequacies until it was too late and they discovered their claims were not valid. 

For example, problems sometimes arose when holidaymakers pursued activities outside those that had been planned or organised by the tour operator, when it would be discovered, too late, that they were not covered for those activities and were solely responsible to fork out for their own medical bills. 

Often customers were not made aware of the importance of declaring pre-existing medical conditions, or the need for additional cover for some sporting or potentially hazardous activities.  FSA regulation also means that customers have the advantage of the services of the Financial Ombudsman if they have a genuine complaint which cannot be resolved.

Risking travel without travel insurance is false economy.  For the sake of a small premium why not travel with the peace of mind of knowing that if problems should arise there is help at hand – and not the total ruination of your holiday – and even financial ruin!

Obtain a cheap quote for quality Travel Insurance or Ski Insurance from the specialists.

Flickr cc Image:  ToastyKen