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09 August 2006
Six out of ten package holidaymakers choose to buy their travel insurance through their travel agent when they book a trip, according to a new report.The figures released by AA travel insurance come as the government has announced that it is to launch a review of travel insurance, as that sold as part of a holiday package is not currently covered by the Financial Services Authority's industry regulations.
This lack of regulation may leave some travellers exposed or unable to claim on their policies, as through ignorance, many consumers are mis-sold travel insurance packages.
Alison Crossley, AA travel insurance manager, said: "This is because it is left up to the holidaymaker to tell the insurer vital information about their health ? for example whether they have any 'pre-existing medical conditions' ? a term that confuses many people.
"Some customers may not think to reveal some information about their health or choose not to, in case it results in a higher premium."
"But the travel insurer may well withdraw cover in the event of a claim for a condition that has not been revealed at the time the insurance was purchased," she added.
Holidaymakers are advised to read the small print or shop around for their travel insurance policy to ensure that they have the best cover for all their needs.
© Adfero Ltd
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