11 October 2005 Air travel insurance levy rejected by government
A proposed £1 levy on those leaving the country by air has been rejected by the government, according to reports.
The charge was put forward by the Civil Aviation Authority as a way of guaranteeing the return journey of those passengers whose airlines went bust while abroad, and could have raised £250 million within three years.
However, aviation minister Karen Buck rejected the plan, saying: "The recommendation has its merits, but after considering all the arguments we have decided that these attractions are outweighed by the disadvantages.
"We believe that people should be free to choose whether to pay for insurance or not. It is not compulsory, for example, to take out medical insurance or an E111 European health form; and the government doesn't force householders to insure their house contents, although most of us think it’s wise to do so.
She added: "We are working with the airline industry to help passengers learn more about air travel insurance. UK airlines have helped us develop a basic message for passengers making online bookings, and some intend to offer specific insurance as well as posting a message." 
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