| Press Release Archive |
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20m travellers without compensation support warns Karma: |
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Date: Tuesday 13 May 2008
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| 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 |
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| 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. |
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| 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. |
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| 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. |
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| “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.” |
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| He continues: “Data specialist Defaqto recently called for more insurers to introduce this cover, but unfortunately, most insurers won’t as they have deals with airlines and tour operators and will not want to make it easy for consumers to sue them. |
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| “Assistance should also come from the airlines, who because of the EU Airline Directive are obliged to provide assistance to passengers when flights are cancelled or delayed. However, this is a well kept secret as they do not want to inform passengers of their rights.” |
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| According to the Financial Ombudsman Service, 1,670 travel insurance complaints were handled up to 31 March 07 – accounting for over 10.5% of its workload. Brian continues: “Given over 95% of travel complaints are supposedly dealt with before they reach the Ombudsman, I suspect this is the thin end of the wedge. Consumers are more likely to give up, frustrated and exhausted by delaying tactics and paltry offers from their tour operator or holiday supplier.” |
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| In a bid to assist consumers in their compensation claims, Karma provides cover that is traditionally excluded by other insurers. This includes; Legal Expenses, failure of travel or accommodation provider, pre-existing medical conditions and disabilities. |
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| Brian concludes: “Travellers will scrutinise every aspect of their holiday arrangements and should do the same with insurance.” |
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