By ROYCE CHEAH
KUALA LUMPUR: The Tourism Ministry has agreed to make it mandatory for all licensed travel agencies to provide insurance which protects travellers against tour packages not being carried out for any reason.
It was reported that the ministry had endorsed a new insurance scheme that had tour fare protection and following a meeting between the ministry and industry stakeholders yesterday, the decision to make such protection mandatory was reached.
However, it was also agreed that members of the Malaysian Association of Tour and Travel Agencies (Matta) would not be forced to participate in the particular scheme created by Tahan Insurance Malaysia Berhad, as Matta would be launching its own similar product on June 19.
The Tahan Insurance scheme would be managed via a joint venture between a private company, Timeless Vacation Sdn Bhd, and a wholly owned subsidiary company of the Tourism Ministry, Pempena Sdn Bhd.
It is expected to be launched in the next few days.
Sources at Pempena confirmed the decision and said the RM15 premium for the coverage would be rolled into the cost of the tour package.
“However, consumers will be given the right to refuse if they choose to do so,” the source said.
Apart from the RM10,000 tour fare protection, the scheme also insures against accidental death and permanent disablement (RM25,000), medical expenses (RM5,000), outpatient treatment (RM1,000), repatriation (RM15,000) and personal liability (RM100,000).
Tahan Insurance branch operation and agency chief marketing officer Charlie Hah said the scheme would also be extended to cover domestic travel.
As for how the scheme would be implemented among the travel agencies, Hah said it was in the process of being finalised, but added that it would be syndicated across four insurance companies initially.
“But no matter how you look at it, even if Matta carries out its own programme, the consumers will benefit in the end,” Hah said.
Apart from protecting outbound travellers, the scheme will also protect foreign inbound travellers in the same manner.
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