MATTA to make travel insurance compulsory

The Malaysian Association of Tour & Travel Agents (MATTA) is planning to make travel insurance compulsory for all outbound travel and tour packages by year-end. MATTA president, Mohd Khalid Harun, said: “It is to guarantee the deposit. The importance of travel insurance cannot be overemphasized in view of the (adverse) happenings around the world. It is better to be covered to avoid any regrets later.”

 

Khalid cited the Tourism Act 1992, which made travel insurance compulsory for those performing the Haj and Umrah, as a precedent for the initiative. MATTA has already started discussions with more than 10 insurance companies to develop the plan. It will be undertaking a roadshow across the country to get members buy-in. “The road show is to make our members’ understand and aware of our rationale for the insurance plan. They can then tell their customers,” Khalid said.

 

Already held in Kuala Lumpur, other areas targeted for the roadshow were Johor (in the south), Penang (in the north) and East Malaysia (Sabah and Sarawak). Sarawak-based Borneo Adventure managing director, Philip Yong, said: “Borneo Adventure introduced in 2000 compulsory insurance for all customers participating in its inbound tours. The company bears the cost of the insurance premium which includes provision for evacuation (from Sarawak).”

 

He added: “However, it is not clear how travel insurance can be forced upon the customer in the absence of legislation.” Saying that he had not yet “received any information from MATTA on the matter”, Yong refrained from further comment.

-TTG Asia.