A policy statement from the Financial Services Authority (FSA) has targeted travel firms and holiday providers that sell travel insurance alongside a holiday.
The FSA has published a policy statement stating the final rules for regulating travel insurance sold with a holiday, which is known as Connected Travel Insurance.
Consumers will benefit from the new scheme, as firms will have to make sure these products are correctly resourced with staff that have been appropriately trained.
Consumers will get access to clear information of what a firm provides, so they can make informed choices and if things go wrong consumers can obtain redress.
The new rule system comes into effect on 1 January 2009.