Box clever with travel insurance

By Jennifer Hill

LONDON (Reuters) - Going on holiday does not always entail rest and relaxation -- as hundreds of passengers recently caught up in chaos at British Airways' new Heathrow terminal can testify.

While such circumstances are outside holidaymakers' control, insuring against the unforeseen can help to ease the pain.

Firstly, make sure you have a European Health Insurance Card, which replaced the E111 form at the start of 2006.

Free to all UK travellers, the card entitles the holder to free or cut-price essential medical treatment in European Union countries, Switzerland, Iceland, Norway and Lichtenstein.

The cards should not be seen as a replacement for travel insurance, but not carrying one could void broader cover.

Unlike the E111, which covered the whole family, every family member must hold their own card. Apply online at www.ehic.org.uk, call 0845 6062030 or pick up a form at the Post Office.

With that in order, consider wider insurance. Many "premier" current accounts include travel insurance as one of the perks, while some credit card providers also give travel cover.

Most banks offer packaged current accounts, and 25 out of 63 packaged accounts on the market come with travel insurance, with the majority offering worldwide, multi-trip policies for the entire family, according to MoneyExpert.com.