16 October 2009

ABTA urged to ensure new passenger protection is comprehensive

ABTA has been urged to ensure any new passenger protection scheme provides belt and braces cover.

The association’s chief executive Mark Tanzer revealed at the Travel Convention in Barcelona that talks were being held with the Civil Aviation Authority and the government over a revised holiday failure protection scheme

Peter Hayman, director at specialist travel insurance provider P J Hayman, has now called on ABTA to ensure that this new cover is comprehensive.

He said: "We are delighted that ABTA is looking to work with the Government and CAA to provide additional holiday failure cover for the 45 million trips that UK consumers make each year.

"However, while they are looking at this issue, we urge them to consider covering the consequences of holiday failure - in the UK and abroad - rather than simply looking to replace the missing element of the holiday.

"Under most current insurance schemes, if you book a flight, hire a car and rent a villa - each with a different company - and the airline goes into receivership, you will only be reimbursed for the price of your ticket.

"This is a serious problem as the consumer could be substantially out of pocket with little or no recourse.

"In addition, many companies will only cover bookings made within the United Kingdom, Channel Islands, Isle of Man and Ireland.

"As hiring self-catering apartments from local residents are a hugely popular choice for many Brits, this lack of cover could see people loose their often substantial deposits should anything go wrong."

Hayman said he anticipated that the ABTA review is likely to take several months.

by Phil Davies