Insurance firm to offer ATOL alternative
Insurance firm Travel and General (T&G) will provide financial protection arrangements for ATOL holders under a deal with the CAA.
The scheme, called the total payment protection policy, will apply to ATOL holders where the licence covers a maximum of 500 passengers per year.
T&G said that under the terms of the agreement, the CAA will accept a ‘per passenger’ insurance cover as an alternative to bonding.
It will also enable both licencable and non-licensable turnover to be covered under the same policy.
T&G will be responsible for refunding customers of failed ATOL holders who are memvbers of the scheme and will also provide funds to the CAA to cover the costs of repatriating customers.
Travel and General spokeswoman Samantha Callaghan said: “There have been calls to simplify the financial regime for ATOL holders and to provide alternatives to bonding, especially as the minimum bond requirement can penalise travel organisers with very small amounts of licensable turnover.”
She said there is no penalty for over-projecting turnover as it the policy is sold on a pay-as-you-go basis.
CAA head of ATOL licensing Andrew Cohen said the agreement with give ATOL holders a choice in how they meet financial protection obligations.
“The agreement ensures there is no reduction in protection for consumers with the repatriation and refund arrangements identical to those provided through the usual bond,” he said.
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