Kuala Lumpur, July 2 - Travellers can have peace of mind, as they will get basic coverage and protection against travel risks should they purchase the new Basic Travel Protection Plan.

The Plan, endorsed by the Tourism Minister, is part of its initiative to restore travellers' confidence towards the travel industry in the country.

"Customers are advised to take up the insurance coverage to prevent any untoward incidents from happening," Tourism Minister Datuk Seri Tengku Adnan Tengku Mansor told reporters today after the launch. He said this in light of the recent case of the abrupt closure of a major travel and tour agency, which left few travellers in a lurch.

Tengku Adnan said with effect from July 1, it is mandatory that all licensed travel and tour agents offer travel insurance for local and overseas travel to their customers, in which customers are advisably required to take it up. However, customers still have the flexibility to exercise rights of refusal.

The Basic Travel Protection Plan is a joint venture between Timeless Vacation Sdn Bhd and Pempena Sdn Bhd., a wholly owned subsidiary of the Ministry. It is underwritten by Tahan Insurance Malaysian Bhd (Tahan Insurance).

The Plan includes a unique 'Tour Fare Protection" benefit which protects Malaysian travellers against financial losses up to RM10,000 should their trips are cancelled for reasons, including sudden medical emergencies, death of a family member, natural disaster that could interrupt the trip, or closure of the travel agent or tour operator.

It also provides essential benefits including protection against accidental death and permanent disablement of RM25,000, medical expenses of RM5,000, outpatient treatment up to RM1,000, repatriation of RM15,000 and personal liability up to RM100,000.

"To cover the whole travel period, inbound travellers will only need to pay RM15 while travellers from abroad US$15," Tengku Adnan said.

Insurance companies that have confirmed their participation for the Plan are MAA Insurance, Multi-Purpose Insurance, Hong Leong Assurance, MUI Continental Insurance, AXA Insurance and Pacific Insurance.

Also present at the launch, are Chairman for Tahan Insurance Malaysia Bhd, Dato' Che Mohd Annuar Che Mohd Senawi and Chairman for Pempena Sdn Bhd., Dato' Chor Chee Heung.