THE Australian Federation of Travel Agents (AFTA) has recommended add-on travel insurance distributed through agents should be exempt from the Federal Treasury’s new model for the sale of add-on insurance products (TD 17 Sep).
A consultation paper developed in the wake of the Hayne Commission into Financial Services suggests the implementation of a four-day period between the purchase of a primary product and the purchase of add-on insurance.
However, AFTA maintains there is overwhelming evidence travel insurance sold through agents is good value for money, is sold in a competitive market, and is well understood by consumers.
The federation also insists there would be a high risk of underinsurance if the proposed deferral period applied to travel insurance.
“Travel Agents have been supporting consumers and the Australian travelling public with appropriate and fit-for-trip travel insurance for decades,” said AFTA Chief Executive Jayson Westbury.
“The good thing about the Treasury’s Proposal Paper is that they have given industry a clear pathway of consultation and we thank them and acknowledge them for this.”
AFTA also praised the Treasury for the sophisticated framework developed in its proposal.
“AFTA looks forward to ongoing consultation with Treasury and the Department of Foreign Affairs and Trade as legislation for the proposed deferred sales model is consulted upon and introduced into Parliament by 30 Jun,” the Association said in a release.
More in Jayson Westbury’s column on page eight.
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Source: traveldaily