JS Insurance blog

New Independent Traveller Cover

JS Insurance is now offering Independent Traveller Cover, which is available as an option on their single trip travel insurance policies and on their Annual multi trip policies.

The public are now choosing to make their own travel arrangements without realising that they may not be fully covered if anything goes wrong.

If the consumer books their holiday independently, rather than as a package, their insurance may not give them adequate cover.

The definition of a package means the pre-arranged combination of at least two of the following components, when sold or offered for sale at an inclusive price and when the service covers a period of more than 24 hours.

This includes overnight accommodation, transport or other tourist services (such as car hire or airport parking) accounting for a significant proportion of the package.

The benefits of this cover for the consumer are:

Extended Cancellation or curtailment charges

This includes cover for cancellation or curtailment if the Foreign & Commonwealth Office issues a directive prohibiting all travel to or recommending evacuation from your destination. The trip costs will be reimbursed if you cancel, or if you have already travelled then repatriation costs and curtailment can be claimed for. An example of where this cover could help is Hurricane Katrina hitting New Orleans.

Extended Delayed Departure

The existing delay benefit under our policy is payable after 12 hours delay to the initial international journey to and from the UK. Independent Traveller cover also pays for delays occurring at the departure point of any connecting public transport both on the outbound and return journeys. In addition, you now have the option to cancel your trip or to be reimbursed for alternative transport and additional accommodation costs, if the public transport on which you are departing the UK is delayed for over 12 hours. Also, if the public transport is cancelled or you are denied boarding due to the flight being overbooked you may cancel your trip. You have the option to either accept a refund or arrange for an alternative flight for which we will reimburse the difference. Alternatively, you can cancel your entire trip and be reimbursed for your flights, accommodation and transfers.

Extended Missed Departure

There is cover for additional accommodation and travel expenses incurred to reach your destination or return to the UK, if you fail to arrive at the departure point in time to board any onward connecting public transport including connections within the UK on the return journey.

So if you miss your onward connection due to delays, we’ll help you with your accommodation and travel expenses.

Extended Accommodation Cover

Cover is now provided for any irrecoverable unused accommodation costs and charges which have been paid or are due if you were not able to travel and use your booked accommodation; as a result of the insolvency of the providers of the accommodation, fire, flood, earthquake, avalanche, hurricane, storm or an outbreak of food poisoning affecting your accommodation or resort.

AXA Insurance have changed the cover for pregnancy in line with the the EU regulations which came into effect on 22nd December 2008.

Instead of the limit of 32 weeks in which AXA will cover pregnancy without any restrictions, it is now set that as long as the carrier, such as British Airways, allows the person to travel after the 32 weeks, then AXA Insurance will cover the person travelling.

The customer is still restricted depending on the health requirements of the airline or other public transport provider but AXA Insurance will now offer cover.

Here are some of the health requirements of the airlines, that have been published:

Scheduled airlines tend to let women fly to around 34 weeks. British Airways is particularly generous. It allows anyone with an uncomplicated single pregnancy to travel up to 36 weeks, and anyone carrying twins (or more) up to 32 weeks. After 28 weeks all pregnant women need a doctor’s letter. Virgin Atlantic allows pregnant women to travel up to 34 weeks, although they must have a doctor’s letter from 28 weeks. Women with multiple pregnancies need to call special assistance well in advance of travel.

When you go on a package holiday, a charter flight is usually included in the price. It’s not always obvious which airline is being used so you need to discuss your pregnancy with the holiday company so it can advise you about the airline and its regulations. Monarch, which supplies charter flights for many tour operators in the UK, allows women to travel up to 34 weeks, although they must have a doctor’s letter from 28 weeks.
Ryanair and easyJet both allow expectant mothers to travel up to 36 weeks with a doctor’s letter from 28 weeks.

AXA Insurance travel insurance is now more in line with the airlines and has no specific cut off period when travel insurance is provided.

JS Insurance has now taken this restriction off their AXA policies and will hopefully allow persons who wish to purchase cover whilst pregnant a more flexible policy.

In January 2009 , tour operators and travel agents have to be authorised by the FSA in order to sell travel insurance . Make sure that when you book a holiday and the travel agent wants to add insurance on that they are authorised .

The FSA set a deadline was 14 in November for these types of firms to become authorised and at the time only 4 had applied to become directly authorised . This is worrying : there should have been many more . One way the these firms can sell travel insurance is becoming an Appointed Representative or an Introducer of an Authorised firm : this entails supervision by the authorised firm to ensure that these travel firms are conducting the sale and admin of travel insurance in compliance with FSA regulations .  Acumus by the looks of things has developed quite a few appointed reps and gone down this route .

This new regulation by the FSA has the disadvantage for the consumer in that the purchase of the insurance with the holiday will be lengthier and more onerous but that’s not a bad thing as the product is important and the process should give the customer a better understanding of it . The FSA really are moving towards “treating customers fairly ” with insurance , it’s a real strategy by them .

So this now begs the question a little  : should the airlines still be able to sell the insurance as part of the airfare ?: the way this is currently sold is as an “opt out” when you are buying a flight online . I.e: unless you clikc that you do not want the insurance , it is automatically added to the fare . I think a lot of people do not and already have insurance ( usually annual ) . In some cases you have to opt out twice ,: is this treating customers fairly am not so sure .

Anyway January 2009 awaits , will the direct insurers get much of the travel insurance business from the travel agenst and tour operators or will less travel insurance be taken out ? Watch this space