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ABTA offers cover for independent travellers
ABTA is offering insurance for under £5 that caters specifically for independent travellers, covering non-ABTA suppliers in the event of failure.
The “ABTA Protection Plan” is now being sold by ABTA agents, and covers independently packaged elements of a holiday not covered by existing financial protection schemes.
ABTA spokeswoman, Frances Tuke told TravelMole that the insurance would vary according to where the traveller was going and what elements of the holiday they want to cover, but said it would typically cost around £5.
The insurance policy will cover airline failure – an area that has remained largely uncovered due to a loophole in consumer protection laws.
The Scheduled Airline Failure Insurance scheme, launched by CAA in the aftermath of September 11 to cover airline failure, and adds up to £3 to the cost of airline tickets, is not comprehensive because it is not offered by all agents, and some do not offer it for all airlines, particularly low cost carriers. But the new ABTA Protection Plan will cover all airline failures, and must be offered by agents according to the ABTA Code of Conduct.
ABTA chief executive Ian Reynolds said: “This new concept will provide the more independent traveller with protection that has never been available before and at a nominal cost.
It will also give ABGTA retailers great added value. “We have been lobbying the government for years to plug the gaps in financial protection and we have got fed up of waiting.”
The ABTA Protection Plan covers airline failure, car hire, hotels, villas and other accommodation offered by companies not eligible for ABTA membership.
There is still a need to travellers to take out normal travel insurance as the ABTA cover is limited to financial failure of a non-ABTA member and baggage cover and does not cover any elements of a holiday bonded or insured elsewhere.
A leaflet is being issued by ABTA to explain to consumers the details of the new scheme and how to make sure their holiday is covered in the event of failure. It is being distributed at ABTA agencies.
Report by Ginny McGrath
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