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Daily Insurance Industry News
Saturday 21st of July 2018
October 23, 2007

BIBA critical of new ATOL APC

by Richard Kilner

Story link: BIBA critical of new ATOL APC

BIBA critical of new ATOL APC

Independent travellers are not adequately protected by the new ATOL APC (ATOL Protection Contribution) system, the British Insurance Brokers’ Association (BIBA) has warned.

Internet sales have increased hugely in recent times, resulting in many more people booking their own hotels and flights separately rather than using a more traditional travel organiser.

Consequently, the numbers of ATOL protected customers has decreased vastly in the last few years.

The Civil Aviation Authority’s figures show that 97% of all travellers were ATOL protected 10 years ago, with the figure for 2006 standing at a much reduced 61%. This means that 18 million travellers are without ATOL or APC protection.

The new APC system covers individuals whose travel organiser become insolvent, and so will not cover losses for the 18 million travellers above.

BIBA’s Technical and Corporate Affairs Executive, Graeme Trudgill, argues that the government needs to move with the times and try to understand the way modern independent travellers organise their holidays, adding that the new ATOL APC is a missed opportunity.

 

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