Friday, 10 April 2009

Travel insurance scam

A couple in Florida has lost hundreds of pounds after finding that their travel firm had sold them a fake travel insurance policy, it has been revealed.

The couple had booked an $8,000 sailing trip on the MSC Orchestra travelling through Sarasota with Legendary Journeys, along with an additional £432 on travel insurance by the agent called Traveller Protection Services.

However, when the wife was advised by her doctor to stay home, the couple found that their travel insurance product was unlicensed and illegal and therefore were unable to get their money back despite being told that they would be reimbursed in the event of them needing to
cancel the holiday.

Traveller Protection Services had also gone out of business.

Yet Legendary Journeys stated that it was unaware that the insurance it sold the couple had been unlicensed.

Barry Resnick, a college professor from Orange said: "The perpetrator lines up a ring of travel agents, promising commissions up to four times what a legitimate insurance company would pay.

The product is masked to look like real insurance, promising compensation for specific potential future losses, in exchange for a payment."

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