Travel Insurance is now mandatory

Its CONFIRMED !

I heard this issue in the news on ERA this morning. Here is the article from The Star online. I do hope that this move will benefit travelers worldwide.

Just be sure that you know what benefits that the travel insurance policy will provide you on your journey.

The Star Online : Tuesday July 3, 2007

Insurance for travellers now

By ROYCE CHEAH

KUALA LUMPUR: It is now mandatory for all licensed travel and tour agencies to offer travel insurance for local and outbound travel.

Announcing this, Tourism Minister Datuk Seri Tengku Adnan Tengku Mansor said it was necessary to ensure travellers were protected against unforeseen circumstances such as the Excellence Holidays debacle, which caused 336 travellers to lose RM2.4mil.

“However, travellers will have the right to refuse such protection,” he said after launching Tahan Insurance Malaysia Bhd’s Basic Travel Protection Plan yesterday.

As for how this would be implemented, Tengku Adnan said it was the ministry that provided the licences for tour and travel agents to operate.

“We will tell them that they have to offer such insurance when existing agents come to renew licences or when new companies apply for licences.

“They must offer it and it is left to the customer to purchase or not. But they must explain that it is available.”

Tengku Adnan said the Basic Travel Protection Plan, which had been endorsed by the ministry, provided tour fare protection of up to RM10,000, apart from basic medical, repatriation, accidental death, permanent disablement and personal liability coverage.

Tour fare protection covers the traveller against cancellations and the travel or tour agency closing as a result of financial collapse or default.

The premium is RM15 per person (local and outbound) and the plan also covers inbound travellers at US$15 per person (RM51).

So far, 24 travel agencies have signed up to offer the insurance.

The plan will be managed by Pempena Sdn Bhd, which is fully owned by the Tourism Ministry, and Timeless Vacation Sdn Bhd and underwritten by seven insurance companies including Tahan Insurance.

Tengku Adnan also urged consumers to exercise discretion when buying tour packages as there were companies which were out to cheat.