New ABTA Insurance Policy Plugs Gap in Protection

9th May 2005

ABTA (the Association of British Travel Agents) has launched a new insurance policy, ‘The ABTA Protection Plan,’ this month. The
policy will be sold through ABTA members only and will protect consumers if
holiday products, not protected by any existing financial protection scheme,
go bust.
The new policy will protect independent travellers against the financial failure of individual
holiday components not covered under the ABTA bond or any other scheme.
These elements include car hire, accommodation and airlines, which in the
past were only covered if they were bought as part of a package.

ABTA Members will be required to offer this policy under the ABTA Code of
Conduct if they are selling products that are not protected through other
schemes.  The policy does not replace the need for full travel insurance as
it only protects customers for the financial failure of a non-ABTA principal
and baggage cover. It also does not cover those non-ABTA companies who would
be eligible to become an ABTA member, and nor does it cover brokers.
it would protect customers’ money if any of the companies booked by a broker

The insurance policy covers airline failure car hire and hotels, villas, or any other accommodation. It does not cover travel or accommodation not booked through an ABTA member, the financial failure of any travel or accommodation provider in Chapter 11 or any threat of insolvency being known at the date of issue of the certificate, any travel or accommodation provider who is bonded or insured elsewhere,
even if the bond is insufficient to meet the claim or any travel agent, tour organiser, booking agent or consolidator with whom
the insured has booked travel or accommodation

Brian McLean Managing Director, IPP said: “This new
concept will provide the more independent traveller with protection that has
never been available before and at a nominal cost. It will also give ABTA
retailers great added value.”

Ian Reynolds, ABTA Chief Executive said: “We have been lobbying the
Government for years to plug the gaps in financial protection and we have
got fed up of waiting. This policy is an excellent stop-gap and will give
ABTA members a leading edge in the market.”



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