As some 1.6million* students across the UK prepare to leave home and head for seats of learning, I urge them to ensure their possessions cover is adequate when offered free by universities and colleges.
It’s standard practise for higher education providers to offer student possessions cover within some rental agreements, particularly Halls of Residences. However, the cover is very basic and cannot match standalone specialist insurance - I’ve seen providers exclude accidental damage and laptops and hide this information away in their small print.
Given the majority of students want laptop cover, will be unable to fulfil policy conditions such as keeping their contents in a locked room and are likely to accidentally damage their property, I believe the policies have limited value.
A first year student living in Halls in London would pay £3.56 a month for our cover which pays out for the theft or damage of contents, including a laptop, without the locked room clauses. A second year student in rented London accommodation would pay £4 per month, so contrary to popular belief, possessions insurance can be comprehensive and affordable.
Karma is the only insurer to offer policies payable monthly and one of a few to offer discounted laptop cover and payouts in case of mugging or assault. As the Policy is available on a ‘pay as you go’ monthly basis, students can cease payments during the summer when their Halls of Residences or privately-rented properties are vacant.
If the university or college is providing free cover, students must check the small print, otherwise they may get a shock when they need to claim. The majority of these ‘free’ schemes are supplied by Endsleigh who announced the closure of its campus offices this summer. Students however have not been left high and dry as Karma’s cover will provide a cost -effective solution for all their needs.

Post A Level students taking a break from their studies and heading for a gap year abroad should have a travel policy that provides hazardous sports and search and rescue cover.
Karma insures 255 sports, including those termed as hazardous or extreme, without charging extra to do so. It also offers a search and rescue facility, either via the local emergency services or funded privately through the insurance.
Traditional gap year providers offer cover for cancellation, missed departure, curtailment, medical expenses, personal liability, cash and baggage, but this is outdated and not enough. Policies should reflect the growth in popularity of hazardous and extreme sports and cover accordingly.
Equally, they should recognise that people may be visiting remote regions and provide search and rescue assistance. South America is a popular destination, yet it‘s one of the most dangerous, so why not offer students a service that offers a helping hand should problems arise? It would give them and their parents’ peace of mind.
In recognition of the increasing popularity of trips that are independently arranged, Karma offers complete traveller protection against failure of an airline or transport provider, hotel or accommodation supplier or car hire firm to honour a pre-booked agreement. Vital if there are no bonded travel agreements in place which is usually the norm for gap year students.
Hazardous or extreme sports covered include; trekking in remote or mountainous areas, white water rafting, canoeing or kayaking, trail running and riding, snow surfing, tobogganing, bungee jumping, go-karting, quad biking and the latest water sport, wakeboarding.

News of a mum being slapped by a drunken woman on a recent Kos to Manchester flight serves as a reminder to passengers that if they are assaulted, they could claim compensation if they have a travel policy and Legal Expenses with Karma.
The loutish behaviour of two women caused the flight to divert to Frankfurt where they were removed from the XL Airways aircraft and questioned by German police. Whilst insurance won’t cover the disruption to the homeward bound travel plans of 214 passengers, it will allow the assault victim to seek recompense.
We are one of a few insurers to offer Legal Expenses – ensuring a team of solicitors are on hand to fight your corner if you’re feeling aggrieved about any situation you fall victim to. This type of cover gives peace of mind as it helps you seek recompense following incidents that may cause a holiday from hell.
Whilst the diversion technically wasn’t caused by the airline and I doubt connecting flights were missed as a result, however, XL does have a duty of care to all of its passengers and if proper controls weren’t in place to do this and a situation was allowed to escalate, then the airline will be liable.

Blog material from Brian Wright, Managing Director
Endsleigh’s student snub inevitable

News that Endsleigh is closing its campus outlets next month is disappointing considering the insurer built its business and reputation in the student sector.

Endsleigh was established to provide insurance for students – this was its raison d etre. It enjoyed support from the National Union of Students and warning bells should have rung when the NUS sold their shares in the business 18 months ago.

Over the years, the so-called student-friendly insurer has lost touch, offering outdated and overpriced policies – a clear indicator that it’s not keen to continue operating in this sector.

When Karma recently researched the cost of gap year travel insurance, Endsleigh’s cover was £444.50 - £284.25 higher than its quote of £160.25. Endsleigh’s annual premium for student possessions cover was £205 - £141.75 higher than Karma’s quote of £63.25 for 12 months cover.

This is just one aspect of their insurance that’s lacking, providers that do not offer all-encompassing student cover and continue to charge high premiums will not survive.

It’s inevitable a provider, offering inferior products at high cost, whether online or via a costly branch network, will result in failure. What’s really concerning is the timing of the 119 branch closures – just before new students arrive on campus and are looking for insurance. Whilst they may not have purchased Endsleigh’s cover, it would have got them thinking about insurance and the need to shop around. Now it may slip off their radar completely.

Karma offers student possessions insurance that’s payable monthly, ensuring premiums aren’t paid when the accommodation isn’t being lived in and laptops are covered at a discount.

It also offers a search and rescue facility with its gap year product and recently increased the number of extreme and hazardous sports it covers to 240. Karma’s one of a few providers to offer complete traveller protection against failure of an airline or transport provider, hotel or accommodation supplier or car hire firm to honour a pre-booked agreement. Vital if there are no bonded travel agreements in place which is usually the norm for gap year students.

Blog material from Brian Wright, Managing Director

Insurers get D minus on gap year cover for students

Students looking to take time off with a gap year could between them shell out £59m* more in travel insurance than is necessary, warns Brian Wright, Managing Director of Karma insurance

Karma sourced worldwide travel insurance costs for a 19 year-old (leaving in August and returning July 2009) and found the difference between its quote of £160.25 and the highest, £455 from specialist student travel agent STA Travel, was a staggering £294.75, nearly three times more expensive. ‘Student-friendly’ insurer Endsleigh quoted the second highest premium at £444.50.

Brian comments: “It’s predicted around 200,000 post A Level students and graduates will pack their bags this year and Government statistics reveal around a quarter will have no insurance. Given the sky-high premiums being offered by the majority of gap year insurers, I’m not surprised.

“I award insurers a D minus for their profiteering. Cover should be accessible to all and we will only do this by making premiums more affordable. The average cost of a gap year is around £12,000 and studies from banks show only one in five students saves to fund their trip. Parents are left to foot the bill for the remainder and I worry, that in the current economic climate, insurance could fall off their radar with so many other financial commitments.�

Traditional gap year providers offer cover for cancellation, missed departure, curtailment, medical expenses, personal liability, cash and baggage, but this says Brian, is outdated and not enough. “Policies should reflect the growth in popularity of sports termed as extreme or hazardous and cover accordingly. Equally, they should recognise that people may be visiting remote regions and provide search and rescue cover, plus protect the cost of trips that are independently arranged.�

Karma’s insurance includes some 240 general, extreme and hazardous sports, such as; trekking in remote or mountainous areas, white water rafting, canoeing or kayaking, trail running and riding, snow surfing, tobogganing, bungee jumping and the latest water sport, wakeboarding.

It provides a search and rescue facility, either via the local emergency services or funded privately through the insurance, and offers complete traveller protection against failure of an airline or transport provider, hotel or accommodation supplier or car hire firm to honour a pre-booked agreement. Vital if there are no bonded travel agreements in place which is usually the norm for gap year students.

Blog material from Brian Wright, Managing Director

Karma supports Government plans to outlaw age discrimination

News that the Government is to bring forward legislation to outlaw all forms of age discrimination as part of a package of measures in the new Equalities Bill has been welcomed by karma insurance.

Karma provides cover for senior citizens up to any age and includes a range of pre-existing medical conditions without medical screening, at a fraction of the cost of other insurers.

The insurer has long been campaigning for discriminatory practices to be abolished and only last month reported that ageism is rife in the travel insurance sector after sourcing quotes for a 65 and 66 year-old couple taking a two week holiday in Spain.

The difference between the lowest and highest internet-based quote (Karma £25.03 and Lloyds TSB £208.70) was £183.67*- £63.69 more than a couple’s basic weekly state pension of £145.01.

Managing Director Brian Wright comments: “I’m delighted the Government recognises that the majority of insurers do not meet the needs of elderly travellers - our research reveals just how wide age discrimination is.
“Over a third will not cover those aged 65 plus and around 70% refuse to cover the over 75s.** Those who do provide cover are quoting extortionate premiums - how can the difference between our premium of £25.03 and the most expensive at £208.70 be justified? And this price gap gets wider with age.�
Brian concludes: “Senior citizens have had the short straw for too long – however, there are age-friendly insurers with jargon-free websites offering superior products at competitive prices. Karma keeps costs down by providing online cover only – specifically supporting ‘silver surfers’ who are recognised as the UK’s fastest growing age-group of internet users.�

Blog material from Brian Wright, Managing Director
20m travellers without compensation support warns Karma

Around 20million travellers heading abroad this year could be left high and dry by insurers who will refuse to help them seek compensation should their holiday be ruined, warns Brian Wright from Karmainsurance.com

Despite taking around £700m in premiums every year, travel insurers reject claims from Brits who experience pain and suffering because of a ‘holiday from hell’ and many will fail to support policyholders if their airline or transport provider, hotel or accommodation supplier or hire car firm fails to honour a pre-booked arrangement.

The Office of National Statistics predicts 70million trips will be made during 2008 and this figure is growing by two million a year. Over half of all trips are sourced independently via the internet.

Brian comments: “More and more people are looking to expand their horizons, visit long-haul destinations and forget about cash-strapped Britain. They’re separately booking flights, hotels, car hire and transfers, but because there are no bonded travel agreements in place, they will have no support should something go wrong.

“Even those who do have bonded travel agreements via package deals are left on their own to try and secure compensation for a ruined holiday. Everyone should have a compensatory safety net and this is only provided by insurers such as Karma who offer complete traveller protection against supplier failure and Legal Expenses with access to solicitors.�

Blog material from Brian Wright, Managing Director
Travel insurers discriminate against 15% of UK population says Karma Insurance

Travel insurers are openly discriminating against the 9 million or so UK sufferers of Diabetes, Epilepsy, Asthma, Multiple Sclerosis, Parkinson’s, Motor Neurone and Dementia, claims Brian Wright, Managing Director of karmainsurance.com

He believes that providers consistently contravene the Disability Discrimination Act which states ‘insurers are required by law to justify their position if they wish to treat people with medical conditions differently from others’.

“Premiums should be based on actuarial statistics and an in-depth knowledge of a condition, but there’s little evidence this happens,� comments Brian. “As soon as people with pre-existing medical conditions ask for a travel quote, discriminatory assumptions are made and they’re faced with higher insurance premiums or no quote at all.�

A view borne out by a recent study undertaken by the Parkinson’s Disease Society. It surveyed 10,000 people with the condition and found that 27% of respondents had either been quoted increased premiums for travel insurance or refused cover. This is despite the fact that Parkinson’s does not affect the length of life. In March this year, Karma’s mystery shoppers found diabetics were given quotes four times more expensive than its own cover.

Independent research specialist Defaqto in its recent travel reports berated insurers’ attitudes to pre-existing medical conditions, stating ‘there are many customers and conditions for which insurers are unwilling to give cover, or can only provide at a price the customer is unwilling to pay’. It suggests all is not well in the market as ‘perennial problems exist with customers who have medical histories’.

Brian continued: “Insurers have created a stigma for those with pre-existing medical conditions and it needs challenging. They take a one size fits all approach, believing specific conditions present the same symptoms and are at the same stages. When challenged they are unable to refer to statistical evidence or justify why a particular premium has been quoted for a particular person and will not offer alternative options if they withhold cover.�

He concluded: “It’s appalling to think that around 9m people, or 15% of the UK’s population, are being discriminated against. Although there are events to raise awareness of these conditions, more needs to be done within the insurance industry. Consumers who are priced out of the market will as a result, either buy insurance and not disclose any history, travel without insurance for that condition and take a risk or not travel at all.�

Karma Insurance recognises medical conditions that are not ordinarily included in insurers’ policies.

Blog material from Brian Wright, Managing Director
Legal Expenses insurance a must when travelling

The recent Heathrow T5 fiasco with almost 250 flights cancelled in four days and 28,000 pieces of stranded luggage, underlines the importance of having Legal Expenses cover in a travel policy, says Karma insurance.

Karma is one of a few insurers to offer Legal Expenses – providing specialist support for travellers who may need to seek recompense because of problems incurred during their trip and any consequential losses.

Managing Director Brian Wright comments: “Those using T5 facilities may have already suffered the hassle of travel disruption, lost holiday and business meeting time, plus had to purchase clothes whilst away and will not want more hassle of managing a compensation claim upon their return.

“The airline says it has suspended its limit on compensation claims, meaning huge numbers of people will be in the queue for a payout. Those with Legal Expenses cover will have a solicitor appointed on their behalf so their case will be given a higher priority, the settlement may be more and they’ll be paid faster than the person without legal representation.�

Legal Expenses costs £5 per policy (plus tax) on single trip cover and £10 for an annual policy.

Blog material from Brian Wright, Managing Director
Ageist insurers raiding pensions pot says Karma insurance

Ageism is rife amongst travel insurers who are pressurising senior citizens into spending more than a week’s pension on over-inflated premiums, according to research* undertaken by karmainsurance.com

Karma sourced travel insurance costs for a 65 and 66 year-old taking a two-week holiday in Spain and the difference between the lowest and highest internet-based quote was £183.67- £63.69 more than a couple’s basic weekly state pension of £145.01.
Managing Director, Brian Wright, comments: “Insurers were recently criticised for not catering for the needs of elderly travellers and our research reveals just how widespread age discrimination is. Over a third will not cover those aged 65 plus and around 70% refuse to cover the over 75s. Those who do provide cover are quoting extortionate premiums - how can the difference between our premium of £25.03 and the most expensive at £208.70 be justified?�