Daily Insurance Industry News
 
 
Daily Insurance Industry News
Tuesday 24th of April 2018
February 16, 2010

IPP alert on subtleties of “package travel” regulations

by Gill Montia

Story link: IPP alert on subtleties of “package travel” regulations

International Passenger Protection (IPP) is warning that many companies are contravening 1992 Package Travel Regulations.

According to the financial failure specialist, which operates the protectmyholiday.com brand, they are therefore risking large penalties for acting outside consumer law.

The firm explains that under the current rules, a booking can become a packaged trip, even when it involves just an overnight stay.

For example a hotel that is offering a room plus theatre or concert ticket deal is offering a package and therefore needs to comply with the Package Travel Regulations.

IPP underwriter, Michelle Irvine, says: “To comply … the organiser needs to provide security against their own financial failure for payments up to the completion of each packaged trip.”

She adds: “Companies may not realise that they are doing anything wrong but they face severe penalties if caught acting outside of the legislation, so they should look at their product range and speak to an expert to see if parts fall within the Regulation.”

In related news, IPP says it has just negotiated an exclusive contract, with major international insurers, to provide cover to comply with the legislation, with the added benefit of a minimal amount of administration.

 

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