Commenting on today's announcement that the FSA is introducing new rules to stop banks and building societies mis-selling packaged accounts, including insurance that customers may not qualify for, Paul Green, director of communications for Saga said: "This is an extremely positive step to help consumers, particularly older travellers who often believe they are covered by travel insurance in their packaged bank accounts, only to find themselves stranded when they try to make a claim.
People simply don't realise that many of these policies tend not to cover pre-existing medical conditions as standard or have upper age limits, meaning that the cover is often totally inappropriate for their needs. Our recent research* showed that for example, people aged 70 and over are not eligible for the free travel insurance included with Barclays Additions Active and Natwest Advantage Gold accounts*. The Nationwide Flex account does not cover customers over 75, and the Halifax Ultimate Reward account those over 71.
These new rules will help people know at the outset whether these products are right for their individual circumstances and if not allow them the opportunity to contact an insurer, like Saga, that does not impose these arbitrary upper age limits."
* Packaged account travel insurance details correct as at March 2012