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Insurance News - Sunday 28th June 2009

Budget airlines accused of breaking EU insurance rules

Budget airlines accused of breaking EU insurance rules

A number of budget airlines around the world, including the UK, today stand accused of ignoring EU legislation with regards to additional charges and taxes which budget airlines add to their ticket prices. The EU ruled that additional charges such as travel insurance and cancellation insurance should be opt in rather than opt out, there by assuming that unless a customer specifically requests it, the extra charges and services should not be included in the overall package.

Companies such as EasyJet are alleged to require customers to opt out of additional travel insurance rather than opt in under the EU rules which increase the cost of a ticket. While there has been no direct comment from the various budget airlines around the world it is known that, like many in the airline industry, they are struggling under the weight of the worldwide recession and the ever-increasing price of oil. While to the general customer a few pounds extra may not make a difference to their overall holiday budget, it does make a difference when you consider the millions of people who use the budget airline industry on a daily basis.

Like anything that you acquire, it is essential that you read the small print and the breakdown of what you are actually paying for.

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