IPP tries to reassure the trade over protection insurance
AITO and others in the trade are up in arms following reports that AM Trust has refused cover to Skiiing Europe and all its passengers (see earlier story).
International Passenger Protection (IPP) director Paul Mclean tries to calm their nerves…
“It is difficult to give an opinion on this without knowing the real facts behind AM Trust’s decision on this case, however quite obviously there is more behind this incident than has been reported making people jump to all kinds of conclusions and accusations.
IPP’s Package Travel Regulations Insurance, the first in the UK market, provides cover for all bookings taken up to the date of normal expiry, or up to the point of expiry in the event of insolvency of the tour operator. This means deposits paid by the consumer, full balance, or both, the consumer will not lose their money.
The loophole being referred to is in respect of a consumer believing they are covered when they are not, which is no different to an agent displaying an ATOL or ABTA logo when the consumer is sold a non-bonded holiday. If the students in this case were issued an insurance certificate or another confirmation of cover when there was no insurance cover in place, then it looks potentially like a fraud may have taken place.
Fraud is not unique to insurance and could affect all three options of the package travel regulations being Bonding, Trust Accounts or Insurance, however section 19 of the Package Travel Regulations makes it clear that a passenger cannot be penalised by the actions of the tour operator.
IPP went through a thorough review process with ABTA many years ago to ensure we met its strict cover requirements as it accepts our insurance for its members. IPP has been providing this insurance, amongst other products, to the travel industry for the last 21 years and we have never refused a valid claim due to the insolvency of a Tour Operator. IPP’s wordings are clear, our combined security backing the products is in excess of Euro 100 Billion and the DTI confirmed in 1992 that our insurance meets the package travel regulations. When effecting any insurance please ensure that your insurance company is experienced in this market, UK domiciled, FSA regulated and rated by a financial institution, while paying attention to the policy terms and conditions.
Parts of the trade shouldn’t be so quick to dismiss the benefits of Insurance considering its ability to be innovative especially during tough economic times when other out-dated options such as bank bonds are becoming extinct.”
Travel industry specialist Towergate Chapman Stevens (TCS) also added its reassurance to the trade that financial failure insurance is fit for purpose.
Managing director Tony Gilpin said: “Prudent underwriting and a common sense approach has resulted in TCS never declining a Financial Failure Insurance claim in the 18 years that we have been involved in this sector. We are open for business and are available to answer any questions from tour operators.â€
Bev Fearis
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Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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