The Australian Federation of Travel Agents has slammed banks and financial institutions over free travel insurance policies that offer no terrorism cover, accusing them of issuing policies that expose their best credit-card customers to huge financial risk. It called on bank executives to launch a full review of their free credit card insurance.
AFTA Chief Executive Jayson Westbury said that in general terms he regarded free travel insurance provided with banks’ premium credit cards as “a lowball Mickey Mouse product”.
Meanwhile, four more financial institutions — international financial giants American Express and HSBC, as well as the Bendigo and Heritage banks — have caved in to pressure in the wake of this week’s investigation by The Australian, and started reviews of the terror cover for their free insurance schemes. They increase to 13 the number of financial institutions that had previously offered little or no terror cover with their premium cards but are now -either reversing or reviewing their stances on terror cover, according to The Australian.
Insurance Council of Australia spokesman Campbell Fuller conceded credit card travel insurance was “a fairly basic product”.