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Agents fail to grasp Flight Plus implications, says insurer
Insurer International Passenger Protection says travel agents are still unaware they will be liable for the financial collapse of a supplier if they become new Flight Plus licence holders.
Its warning came following the collapse this month of Air Australia, which left hundreds of passengers stranded.
"We are seeing many agents still not grasping the actual liabilities they could face, no different to existing ATOL holders, with agents still convinced that their ATOL covers the collapse of not only them but anything they sell," said IPP director Paul Mclean.
"ATOL will only cover the collapse of anything the agent sells if the agent themselves collapses at the same time, otherwise the agent is always responsible for anything they sell."
IPP also said it was disappointed the new ATOL certificate to be introduced later this year will only be issued to customers buying ATOL-protected holidays. It said certificates should be issued for all sales, to make it clear which holidays weren’t protected so customers had the option to protect their holidays if they wished.
By Linsey McNeill
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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