FCA urges consumers to scrutinise travel insurance cover
In the wake of the collapse of tour operator Thomas Cook, the Financial Conduct Authority has issued advice for consumers buying travel insurance.
“We are aware that some consumers have experienced issues with the scope and terms of their travel insurance when abroad”, the FCA wrote on its website.
“In particular, some consumers have had issues about whether they are covered for use of private medical facilities when a medical emergency arises.
“When buying travel insurance you should consider what cover you are looking for and whether it meets your needs.
“Whilst price may be an important consideration you should ensure you are aware of, and comfortable with, any restrictions in your policy.”
The FCA also said that, when selling travel insurance, firms need to meet their obligations under the FCA’s rules.
“Firms need to ensure that a customer is given appropriate product information, including, for general insurance contracts, an insurance product information document (IPID), which must focus on the key information consumers need to make an informed decision.
The regulator said that the IPID must set out information on the main policy exclusions. It added that insurers are also required to handle claims fairly and promptly.
Consumers who are unhappy with their travel insurance policy should, the FCA said, refer to its information on complaining to insurance firm.
The financial watchdog also urged consumers who are uncertain about the effect of the UK leaving the EU on their travel insurance to contact their travel insurance provider and read its Brexit travel insurance information.