MORE client complaints against travel policies are upheld than in any other sector of the insurance market, insurance ombudsman Walter Merricks said.
He said about one-tenth of the 50,000 complaints a year received by his office relate to travel insurance and nearly 40% of cases are found in the clients’ favour, compared with 33% for other sectors of the insurance industry.
Merricks claimed the key problem was the huge variation in cover and conditions, which led to a mismatch between clients’ expectations and the performance of the policy.
“There needs to be a standardisation of terms and conditions so comparisons can be made between policies,” he said.
And he told insurers they were unrealistic to expect passengers to read the policy before they travel. “It is the most complex financial instrument some people ever purchase. Few policies are written, designed or printed with the intention that anyone would actually read them.” Merricks also attacked the way agents sell travel insurance.
He said a mystery shopper exercise last year revealed that 50% of agents are not complying with the Association of British Insurers code of conduct by not pointing out key elements of the policy to prospective clients.
He added that the advent of the General Insurance Standards Council offered potential to make a step change in standards. “Agents should have a minimum exposure to the principles of insurance and how claims are dealt with. More money needs to be spent training travel agents.