Virgin Australia has stopped automatically adding travel insurance to customers' online airfare bookings in response to concerns by the consumer watchdog that travellers have been inadvertently paying for unwanted extras.
The airline made the change following talks with the Australian Competition and Consumer Commission, and watchdog chairman Rod Sims has urged other domestic carriers to follow Virgin Australia's lead.
Qantas does not automatically pre-select travel insurance, but Virgin Australia's budget carrier Tigerair and Qantas' no-frills Jetstar do.
"Experience overseas, including in New Zealand, shows consumers are more than capable of making purchasing decisions themselves," Mr Sims said in a statement on Thursday.
A Virgin Australia spokesperson said the change brought travel insurance into line with its other opt-in features such as extra baggage and premium seat selection.
