Tough new rules to stop cowboy travel agents selling travel insurance to holidaymakers have come in to force.

Travel insurance advisors must now give travellers ‘best advice’ about travel insurance that meets their requirements.

Everyone selling travel cover must have clearance to do so from the FSA or only offer products as an introducer or agent for a licenses firm, which gives holiday goers key benefits that they did not previously have.

The new regulations are as follows: Firms offering travel insurance must have the right resources and staff who are competent to give travel insurance advice, purchasers will receive clear information about a firm’s insurance services and lastly, customers can complain to the FSA.

These new regulations should tighten up procedures and stop travel agents making commissions from selling unsuitable travel insurance products.

According to a survey, as many as 8.1 million people could be victims of a travel insurance con in the past year alone.

ABTA feared that holiday goers may travel uninsured because the cost and difficulty of keeping new regulations will mean fewer companies will offer travel insurance.