HM Treasury is set to investigate the travel insurance policies which are sold as part of a package.
The body states that 20 million UK residents purchase travel insurance policies each year, many of which are part of a package holiday bought from an agent.
However, travel insurance policies sold as part of these deals are not subject to the same controls as those sold on a stand alone basis, prompting concerns within the industry.
HM Treasury intends to investigate these travel insurance policies and establish whether consumers need any additional protection in the market .
Ed Balls, the economic secretary to the treasury, commented: “Our investigation will ask whether it’s fair to put all the pressure on ordinary families to read the small print and ask the right questions to make sure they are properly covered [by travel insurance policies].
“The first step will be to collect all the evidence from consumers and industry experts – and then work out what needs to be done.”
Meanwhile, Richard Mason of moneysupermarket.com recently warned UK travellers to be aware that they may need travel insurance cover when taking all breaks, even small trips within the country .
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