New rules could mean fewer insured

Published on Friday 2 January 2009 21:47

MORE people will travel without insurance cover this year after a change in government rules, it has been predicted.

Sales of travel insurance through travel agents and tour operators are now regulated, following rules that came into play on New Year's Day. The Association of British Travel Agents (ABTA) has warned that the cost and complexity of the new rules means fewer companies will offer cover.

It said the outcome would be an increase in the number of holidaymakers travelling without the insurance, which typically includes cover for cancellations, lost baggage and accidents and illness overseas.

Mike Monk, ABTA's head of financial services, said: "When you are travelling, make sure you get adequate and appropriate travel insurance for where you are going and for what you will be doing. Ask your travel company about insurance, and if they can't offer it, make sure you obtain it elsewhere."

Travel agents and tour operators not regulated have to stop selling and advising on travel insurance and just provide leaflets and information on how to contact insurers.