Selling travel insurance is 'no laughing matter'
02 April 2009 12:05
April Fool's Day might be a time for japes, but holidaymakers have been urged to ensure that the joke isn't on them as new statistics reveal that a quarter of travel companies are not complying with new rules on travel insurance selling.
World First Travel Insurance has warned that despite the introduction of new regulations by the Financial Service Authority (FSA) on January 1st, 25 per cent of firms are still flaunting holiday insurance rules.
A study of 400 sites by the specialist provider revealed that appointed representatives (AR) are failing to display the insurer on whose behalf they act, while non-AR operators continue to claim they can arrange travel cover, directly contravening the FSA ruling.
What's more, World First Travel Insurance also found that non-regulated travel companies continue to advertise cover and 'recommend' specific providers, further breeching the regulations.
Martin Rothwell, managing partner of the firm, said that many agents have failed to update their paperwork and websites to update the industry revisions.
"They need to realise that if they don't make the changes they are in contravention of FSA rules and this could have real consequences," he added.
Prior to the introduction of the new legislation, Sainsbury's reported that as many as five per cent of people buying travel insurance from their holiday agent in 2008 had been falsely told that they had to do so.