IN HER letter, "Lack of insurance cover for H1N1-affected travel" (my paper, June 5), Ms Yvonne Kong highlighted an important point about travel-insurance coverage.
She was informed by her insurer that expenses resulting from trip cancellations because of the H1N1 flu would not be covered.
Banks should not market travel insurance that only appears to give travellers peace of mind.
They should have learnt from the Lehman Brothers Minibonds debacle and should know that the products they sell ought to be scrutinised for their appropriateness for buyers.
Most people would not have read the fine print and would have assumed that they would be covered if they were in a situation like Ms Kong's.
Aside from the plan from MSIG Insurance which Ms Kong took up, I would like to highlight that the Got-It- Covered Travel Plan offered by Standard Chartered Bank also does not cover trip-cancellation costs for travel to areas affected by H1N1, as listed by the Ministry of Health.
In the light of the above, the Monetary Authority of Singapore should remind banks that they need to review the appropriateness of their products before selling them.
Banks also should not fall back on exclusion clauses which exempt them from fulfilling their obligations to buyers.
Mr Ronald Wee
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