New rules to protect ill tourists

ADVICE

New rules to protect people with medical conditions from rip-off travel insurance are on the way.

Millions of people with medical conditions go abroad every year and unfortunately, for many, falling sick overseas could mean a huge medical bill.

However, new regulations are being proposed to help those with pre-existing illnesses find affordable insurance.

The Financial Conduct Authority (FCA) wants to introduce a new “signposting” rule that will offer customers a directory of travel insurance firms that will cover them – with no strings attached.

It said the move would not just protect vulnerable people, but also target rip-off premiums – where people are hit with extra charges, despite declaring their condition when taking out the cover.

A further consultation will also look at when cover is declined or cancelled mid-term, and those who are being hit with “additional premiums” due to existing illnesses.

According to the FCA, 14.1 million Brits with a pre-existing medical condition buy travel insurance each year.

Of these, approximately 0.7% are declined cover, and 11% will end up with a policy that excludes their condition.

FCA research found a lack of quality information on alternative options is being offered to consumers after they are refused cover. This can cause some travellers to assume that they are uninsurable.

This leaves them at greater risk of going holiday without insurance or a policy that excludes their condition, which could lead to an expensive medical bill if they fall ill when abroad.