Travel agents’ sales practices put British holidaymakers at risk
Brits booking their holidays are being warned to check the small print on their insurance polices before risking their health by travelling with inappropriate insurance sold to them by travel agents.
According to research by Direct Line Travel Insurance, a fifth of holidaymakers (20 per cent) who are sold insurance by their travel agent will travel with a pre-existing medical condition, without checking they are covered for it. The vast majority of insurance polices will not cover a pre-existing condition unless it is disclosed.
Two thirds (64 per cent) of holidaymakers sold insurance by their travel agent said their policy was not explained to them clearly – proof that negligent travel agents are miss-selling insurance products.
These findings are released in the week the Treasury review investigating travel agents closes. Although many travel agents sell insurance, they are not regulated by the Financial Services Authority (FSA), which can lead to holidaymakers travelling with inadequate cover. The review will determine whether insurance sold as part of a holiday package through travel agents should be subject to same level of regulation as insurers.
Medical conditions are a particular cause for concern, with more than half of holidaymakers (55 per cent) not asked about pre-existing medical conditions by travel agents. Seventy-two per cent of holidaymakers were not quizzed about whether they had ever had cancer or heart related conditions, 77 per cent about whether they have high blood pressure, and a further 75 per cent about whether they are awaiting medical investigation or surgery.
Most worryingly, another one in 20 holidaymakers were told that they would not be able to travel without taking out insurance with the travel agent.
The research found clear evidence of misleading and ‘hard-sell’ sales techniques, with one in 20 people who buy insurance from an agent (four per cent) admitting they were pressured by the agent into taking it out. Fourteen per cent of holidaymakers who are sold insurance by a travel agent were not being given time to think by the agent, and more than one in 20 were subjected to jargon (seven per cent).
Eighty-three per cent of Britons are unaware that travel agents can sell travel insurance without regulation from the FSA, although there is strong support for this to change, with 91 per cent of Britons in favour of introducing regulation.
Chris Price, Direct Line’s Head of Travel Insurance, commented:
“Every year, the health of millions of British holidaymakers is being put at risk by improperly sold insurance from travel agents. As travel agents are not regulated in the same way as travel insurers, customers do not have the same safeguards.”
“As the findings prove, holidaymakers are being made subject to high pressure sales techniques and are not being asked important information about their health. This means that many people are travelling overseas unaware that they are not covered for serious conditions, leaving them in potentially dangerous situations, should the worst happen.”
“Direct Line has been campaigning for some time for regulations to be extended to include bundled travel insurance and we welcome the Treasury Committee’s new inquiry.”
For more information, log on to www.directline.com/travel
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Lindsay Wienand / Direct Line Press Office 0845 878 5816 / Lindsay.wienand@directline.com
Andi Neophytou/Michael Sheen/Band & Brown Communications 0207 419 6949/8616/7000 Email: andi@bbpr.com / michael@bbpr.com
Notes to Editors:
Research was carried out online between 17 and 19 October 2006 by YouGov Plc, who questioned a sample of 1980 GB adults. Results are weighted to reflect the GB population.
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