I have got the travel insurance covered, do I have to have the E111 form? is it compulsory?

Not compulsory but a good idea as it can allow free/reduced cost hospital prices abroad if needed.

Make sure to apply before the deadline of 31/8/2005 though, as the form is changing soon.

If going to Europe a definate yes. There is a new form and once this is completed you will get a credit card style entitlement card so you don't have to carry round a piece of paper. We received our cards this week.

Insurance companies will only settle claims on medical insurance to the value of what the cost would have been had you produced an E111 form. Therefore if you receive treatment in Europe without an E111 there may be a large discrepancy between what you pay out and what you can recover from your travel insurers

Piece in the Sunday Times yesterday indicating that some insurance companies won't pay out for medical bills if you are an EU Country, but don't have an E111.