Report by Jane Archer
THOUSANDS of annual multi-trip travel insurance policies are
giving clients less than 12 months cover.
Marcus Hearn managing director Jeffrey Klipp said wordings
on policies have been tightened up to make premiums cheaper, resulting in some
policies taking effect from the date it was sold, not the date of the first
holiday.
Klipp said: “If a client buys a two-week holiday and a
single trip insurance policy on November 1, for travel on August 1, the policy
does not take effect until the holiday starts but free cancellation cover is in
place from the date that contract was issued.
“It should be the same with annual cover, but there are now
some policies on the market that became valid from the date of issue. A client
who does not go on holiday until three months after they bought the insurance
only has nine months left on the policy,” he said.