Travel insurance deals made available through premium credit cards have provoked the ire of The Australian Federation of Travel Agents (AFTA).
Following an investigation by The Australian into the lack of terrorism-related cover banks and financial institutions offer through their free premium credit card travel insurance, AFTA CEO Jayson Westbury has labeled the products as ‘a lowball Mickey Mouse product’.
Accusing the insurance providers of exposing customers to large financial risk, Mr Westbury said personal accounts from terror victims had opened his eyes to the failures of credit card travel insurance policies.
“I have become aware of Australians who have been caught up without appropriate cover,” he told The Australian’s Business Review.
“Now that this has been highlighted by recent tragic events, it is time for the bank executives to rethink the sorts of insurance they’re including with these credit cards. They also need to be more transparent with consumers.”
The AFTA boss also took aim at the insurance companies that “peddle inferior products through bank credit cards”.
“They should be called to account. History has shown the number of terrorism events in the world are insignificant compared to the number of claims that go on for travel insurance. It should be standard cover.”
According to The Australian, financial institutions have begun to take note, with 13 organisations that had offered little or no terror cover with their premium cards now reversing or reviewing their terror-related clauses.