An insurer has announced that many UK holidaymakers have been “misled” on their travel insurance during the past year.

According to Sainsbury’s Travel Insurance, as many as 400,000 UK travel insurance customers had been taken in by travel agents.

Consequently, the insurer revealed that it will welcome the new Financial Services Authority (FSA) regulations on the sale of travel insurance.

Manager, Sam Marrs of Sainsbury’s Travel Insurance said: "Our research shows that up to as many as 8.1 million people could have bought insurance from travel agents over the past 12 months and the new regulation will provide consumers with valuable much needed protection."

The new law will benefit customers purchasing travel insurance cover from travel agents as travel agents who provide cover will now be a part of the auspices of the FSA.

Meanwhile, after 2008’s pitfalls in the number of airline failures, insurers have advised that holidaymakers ensure they have adequate travel insurance which covers them in the event of their airline going bust.

Saga Insurance has recently launched new cover regarding airline failure which will stand as a standard feature in its travel insurance packages.

Head of communications, Paul Green of Saga Group said: "In today's uncertain economic climate the savvy independent traveller needs to check if their insurance covers airline failure if they want to travel with confidence in 2009."