Insurance premium tax (IPT) in the UK stands a massive 20% per cent, when the same tax on any other insurance product is only 6%. This unfair tax puts the cost of a travel insurance policy up significantly. We whole heartedly support any discussions with Government to level this unfair playing field.
IPT was increased to that of VAT by the previous Government as a disincentive for travel firms to use insurance in discounting wars. Now that this practice is largely redundant, it is about time that the tax was brought back to the same level as all other classes of insurance.
Lowering IPT could lead to more people being able to purchase travel insurance rather than relying, for example, on the European Health Insurance Card whish does not cover 100% of medical costs and certainly does not enable the cost of repatriation, be this road or air ambulance. The cost of an air ambulance from Europe could be as much as �20,000.