AA Travel Insurance has described HM Treasury's decision to probe travel insurance policies sold through travel agents as "not before time".
The company has stated that 60 per cent of all travel insurance policies are bought through a travel agent, sales which are not regulated by the Financial Services Authority.
AA Travel Insurance states that up to two million travellers may be paying "significantly" more than they need to for their policy, while they could find that their cover is "worthless" when they come to claim.
Alison Crossley, AA Travel Insurance manager, explains why travelers may find that their cover is inadequate: "This is because it is left up to the holidaymaker to tell the insurer vital information about their health - for example whether they have any pre-existing medical conditions - a term that confuses many people."
"Racking up costs at a foreign hospital is not the time to find you should have made a vital phone call, even if you have unwittingly omitted to do so."
HM Treasury recently announced that it would be investigating travel insurance policies sold by agents, to ensure that customers are receiving a fair deal.




