Daily Insurance Industry News
 
 
Daily Insurance Industry News
Wednesday 25th of April 2018
October 13, 2009

ATOL may be extended

by Richard Kilner

Story link: ATOL may be extended

Mark Tanzer, chief executive of ABTA, has announced plans to help prevent travellers being exposed to the possible financial collapse of their travel itinerary suppliers.

Comprehensive specifics of the plan have not yet been made public though it is speculated to augment the ATOL levy on package holidays.

ATOL (Air Tour Operators Licence) is run by the Civil Aviation Authority and puts a protection levy on holiday costs for holidays booked through a tour operator or as a component part of the trip via one agent.

The levy is being more than doubled, from £1 to £2.50, as it is presently running at a loss of £46.5m.

ProtectMyHoliday.com’s Michael Ward has slammed the levy, comparing its to the MPs’ expenses scandal, and stated that not only has it risen by 150% in only its second year of operation but that airline collapse would cost one hundredfold that of a tour operator going under, for which the levy is £2.50.

Ward added that even £10 per person would be insufficient, and argued for more information to be made available to travellers who would be able to opt in or out of such a scheme.

Quality travel insurance policies will provide coverage against this danger as standard, and stand alone policies (including ProtectMyHoliday.com) can protect against it as well.

 

News posted:



Related stories to ATOL may be extended: