Insolvency: Is your holiday covered?

By , October 17, 2011 12:50 pm
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Travel insurance over 65 with insolvency cover can help plug a gap in financial protection for your holiday.

The level of financial protection you have for your holiday depends on how you book it, with those that book a package having greater protection than those that book independently.

The positive side of booking elements of your holiday separately rather than buying a traditional package is the freedom that it gives you to choose exactly what you want to do, when you want to do it. Choose the airline you want, the hotel you want and the length of stay that you want – when you’re over 65 it’s about time you get to do what you want!

The downside of the independently booked holiday is that you don’t get the same level of financial protection as when you book a traditional package.

Under the current ATOL (air travel operator’s license) regulations, which are operated by the CAA, your holiday is only financially protected if it is bought as a traditional package. If you book elements of your holiday separately they will not be protected under the ATOL scheme.

The Government does have plans to extend the ATOL protection scheme to include holiday components bought separately, such as hotels and flights, but this now doesn’t look likely to come in to force until April 2012.

In the meantime, if you do book elements of your holiday separately, buying the right travel insurance can help plug the gap in the financial protection available for your holiday.
Look out for Scheduled Airline Failure or Dynamic Packaging Cover which can be added to many travel insurance policies. This type of travel insurance cover is specifically designed to provide additional financial protection for people who book their holiday independently rather than a package which would be covered by an ATOL bond.

Scheduled Airline Failure provides cover in the event that one of your holiday suppliers, with whom you have booked and paid in advance, becomes insolvent. It is not limited to airlines; cover generally extends to hotels, car ferries, villa’s abroad & cottages in the UK, railway journeys, coach journeys, car hire and excursions.

With the travel industry experiencing their worst trading conditions in 30 years and 19 tour operators going bust this year alone, it’s important to make sure that your holiday is protected.

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