Protection for holidaymakers to be extended - Travel insurance - News - Moneyfacts


Protection for holidaymakers to be extended

Protection for holidaymakers to be extended

Category: Travel insurance

Updated: 26/11/2012
First Published: 23/06/2011

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Millions more holidaymakers could soon be protected from losses should their tour operator go bust.

Aviation Minister Theresa Villiers said that under plans that are set to be implemented at the beginning of next year, the scope of the Air Travel Operators' Licence (ATOL) is to be extended.

ATOL covers people should their airline or tour operator go bankrupt.

In 2010 alone, 190,000 holidaymakers were repatriated or received full refunds when their operator went out of business.

Under the proposals, an extra six million people a year would be covered under the scheme.

This would include many holidays which look like packages that are currently covered by ATOL but fall outside existing legislation.

These include 'flight plus' packages which include a flight and other holiday components within two successive days.

The new rules will also:

  • Ensure everyone booking ATOL protected holidays will get a recognisable ATOL certificate confirming their rights under the scheme for refunds and repatriation should their travel company fail.
  • Help ensure that 'agent for the consumer' businesses arranging holidays are fully aware of their legal responsibilities to consumers.

"While the chances of a holiday company going under are thankfully very low, the impact on those affected can be significant," said Ms Villiers.

"Recent years have highlighted not only how important financial protection is to holidaymakers, but also the fact that the ATOL scheme is in urgent need of reform.

"We have always been clear about our commitment to modernising the ATOL scheme, and these proposals are an important step towards achieving just that."

Compare travel insurance providers

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

We’re all going on a hobby holiday

While many of us like to go on holiday to enjoy a week or two of pure relaxation, others jet off to indulge in more active pursuits. Indeed, research shows that this is a growing trend, with more and more Brits choosing a hobby holiday.

What would you do if you fell ill abroad?

Going on holiday is something everyone looks forward to, but it can be dampened by falling ill – particularly if you’re on foreign soil. It isn’t something that’s nice to think about, but if the worst were to happen, just what would you do?

Staycationing? You still need insurance

Many people will be looking forward to a holiday at this time of year, but it won’t always be on foreign soil. Indeed, more and more people are realising the delights of “staycationing”, but what they may not realise is that insurance is still vital.