STERLING Travel Insurance is relaunching its annual travel scheme as a pick-and-mix policy to enable it to cut the basic premium to £22 net for Europe and £30 for worldwide cover.
The price gives clients basic travel insurance cover and a maximum duration for any one trip of 23 days. The standard period on an annual policy is 31 days or more.
Longer trips and additional benefits, for instance ski or business cover, can be added for extra premium. Up to 17 days skiing costs £14 net in Europe and £16 for worldwide cover. In addition, older clients can pay extra to extend the maximum age beyond 65.
Sales director Elaine Jones said the aim is to provide agents with a low-cost annual policy to enable them to compete with the growing direct-sell market.
“We have made the lead-in price a lot cheaper by taking out all the additional items and offering them as optional extras. At the moment people are often paying for things they do not need,” she added. “Most people do not go away for longer than two weeks at one time and not everyone wants to have ski cover. With our Annual Multi Trip they can buy the cover they want.”
The new policy goes on sale from January 1 2000. At the same time, Sterling is relaunching its single-trip holiday insurance with a new double-cover option for clients. Double cover, which will cost an additional 50%-100% of the normal premium depending on the amount of business provided by each agent, pushes medical to £20m and cancellation to £10,000.
Personal baggage increases to £2,000. “We have had requests for higher cover from clients who are taking more expensive holidays,” said Jones.
The standard single-trip insurance premium is unchanged from this year, at £10 and £23.50 net for 17 days Europe and worldwide, including North America, respectively, despite increases in the cover. Personal accident is increased from £20,000 to £25,000 and cancellation and medical have doubled to £5,000 and £10m.
The policy will also have a new golf section covering clubs, green fees and the cost of celebrating a hole in one.