We have sourced a range of specialist travel trust account insurance policies via our insurance partners.
The Package Travel and Linked Travel Arrangements Regulations 2018 changed the way that holders of travel trust accounts can access their protected funds. Organisers of package holidays can release a proportion of monies from trust that would otherwise be required to be held on trust if they obtain a commensurate degree of trust account insurance protection. This represents an enormous benefit to account holders’ cash flow. It enables travel companies to release funds from trust in order to pay suppliers, rather than having to funds those payments from the company’s working capital.
The Package Travel Regulations 2018 also impose obligations on trust account holders to obtain additional insurance if there is a risk of repatriation.
Insurance provisions under the Package Travel and Linked Travel Arrangements Regulations 2018 are specific about the terms that must be included in trust account insurance policies.
They state that: –
The insurer must be authorised in respect of insurance business in the United Kingdom and the insurer must agree to indemnify travellers in the event of the insolvency of the organiser (NOT the insolvency of the supplier, as some travel trust account insurances provide).
Travellers must be the insured persons under the policy and the traveller must acquire the benefit of the policy in the event of the organiser’s insolvency.
Policies may not include exclusions or limitations of liability for the insure or the account holder.
The policy must cover the costs of refunding all payments made by or on behalf of travellers for any travel service not fully performed because of the insolvency and repatriating the traveller and, if necessary, financing the traveller’s accommodation prior to the repatriation.
Our insurance partners can provide suitable and compliant insurances at favourable rates to our account holders.