Tigerair in trouble over travel insurance claim
Tigerair came into a spot of bother recently when it was investigated by the Australian Securities Investment Commission (ASIC) regarding travel insurance booked on the airline’s website.
The dispute came from a minor detail in the 15,000 word product disclosure statement which revealed that passengers were not actually covered for flight delays, cancellations and rescheduling with “pre-ticked” travel insurance.
ASIC’s main concern was that website representations were not consistent with that which is set out in the policies and the product disclosure statements.
“Insurance and other financial products should not be promoted in a way that misleads consumers about the price and benefits of the product,” said ASIC deputy chairman Peter Kell. “Consumers should be confident they are paying the price and getting the benefits that they understand they are getting. ASIC will continue to monitor advertising to ensure it’s not misleading.”
Following the concerns raised by Australia’s corporate regulator, Tigerair promptly removed the misleading representations on its site. But the case stands as an important reminder to the importance of understanding the detail hidden in product disclosure statements and remaining vigilant as a consumer.
Spokesman for consumer advocacy group CHOICE, Tom Godfrey, said, “While it’s important to have international travel insurance, purchasing the wrong policy can leave you high and dry and thousands of dollars out of pocket.”
“Don’t let yourself be tricked by the airlines’ one-size-fits-all travel insurance. It’s particularly important for consumers with pre-existing medical conditions to take their time to read the detail of the policy and if in doubt contact their insurer to find out what is, and what isn’t covered.”
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Related links:
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