Travel insurers face the heat after being asked to clean up their act of misguiding people by policies that mislead.

According to the General Insurance Ombudsman complaints against travel insurance companies are ample. In the past financial year these complaints formed 15.4 per cent part of all disputes in the general insurance division.

The Ombudsman John Price said, “Disputes commonly arose over the wording of policies. Some policy wording can be very misleading. People need to understand what they are getting. People are led to believe they are receiving something when they read this hype saying you will be covered for all these problems overseas when, in fact, you won't be.''

Most of the complaints were regarding pay claims being refused for common health ailments, stolen luggage and the voiding of cover to countries that have a Department of Foreign Affairs and Trade travel warning.

Much has been done to give clear policies but more was needed. ''The insurance industry has worked towards that, to provide clearer policies, to keep the wording simple and using fonts which can be read without the aid of a magnifying glass,” Prince added.

Insurance Council of Australia has a code of practice which states that the industry is dedicated to be honest in its dealing with people.

There are reports that people are opting more for online policies as more travelers search the internet for holidays.