Travel agents may soon be registered as 'insurance agents' and sell travel insurance under a proposal to be discussed by lawmakers on July 4.

In a paper submitted to the Legislative Council Panel on Financial Affairs today, the Economic Development & Labour Bureau said 40% to 50% of Hong Kong people buy travel insurance. But the Boxing Day tsunami disaster further emphasised the importance of taking out travel insurance, and the habit should be encouraged.

The bureau said while there are different channels through which people can take out insurance, most buy it through travel agents when they book their travel plans, making them appear to be the most convenient point of sale and means for promoting travel insurance.

It proposes a new category of 'travel insurance agents' in the Insurance Intermediaries Quality Assurance Scheme, to encourage travel agents to obtain the necessary insurance qualifications. The proposal will see travel agents adhere to the same self-regulatory system as insurance agents, pass an examination, and pay the same fees.

Travel agents will only be allowed to sell insurance in line with the client's tour or travel package.

The Federation of Insurers and Travel Industry Council have backed the scheme. If passed, it will be ready for implementation early next year.