Travel agents and operators who are breaking ABTA rules by selling travel insurance without having passed the association’s exams will find out next week if they will be fined or face expulsion.
ABTA members accused of being in breach of the association’s code of conduct have been summoned to appear before a disciplinary committee at Newman Street on July 21.
The association has refused to reveal how many members it has written to about breaching its code but says it is a very small percentage of its membership.
Travel Weekly has been informed there could be around 200 cases under investigation.
News of ABTA’s hard-line stance comes as the association revealed it has written to the Government requesting information about when the exemption from Financial Services Authority regulation for agents and operators who have taken approved exams will be reviewed. It is due to run out in 2007 but no exact date has ever been set.
ABTA’s case will not be helped by a Holiday Which? report this month following an investigation that found serious flaws in the way independents and multiples sell insurance. TUI and Thomas Cook negotiated a deal to run their own, non-ABTA, exam schemes.
Which? has called for the FSA exemption to be lifted and has advised consumers not to buy travel insurance from agents.
An ABTA spokesman said it is unlikely operators or agents will be expelled and a fine is more probable, but said members could not plead ignorance about the exams.
The deadline for members to ensure all staff have passed the level one exam and at least one in each office the level two was September 30 2005. “We can hardly be accused by agents of not being transparent on this,” the spokesman said.
However, one London agent who did not wish to be named ahead of appearing before the committee, branded the disciplinary process a waste of time.
“I have never before been in breach of ABTA – it’s one offence in 25 years. Appearing in front of a committee, how demeaning is that?” said the agent.
“It’s so difficult to make a buck these days. Instead of wasting ABTA’s and members’ time and money they should have sent another letter rapping me over the knuckles.”
The agent had stopped selling insurance earlier this year and letters from ABTA had been lost during a move of premises.
ABTA’s finance director Mike Monk, who has written to the Treasury this week about the future of the FSA exemption, said: “It would be a serious matter if we were to lose the current exemption.
“It’s essential members continue to get new staff to sit the insurance trainee exams and ensure they are applying the knowledge they have gained.
“If we have any legitimate examples of members’ staff mis-selling insurance we will review the matter under the code.”
ABTA’s Code of Conduct is available to download as a .pdf document from the ABTA website
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