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AFTA says new insurance will protect agents, consumers

November 25, 2013 Corporate, Headline News 1 Comment Email Email

egtmedia59The Australian Federation of Travel Agents (AFTA) says the new insurance product it’s promoting for the Australian travel market will protect travel intermediaries and consumers against end supplier failure.

As a key component of the reform being delivered under the Travel Industry Transition Plan (TITP), AFTA has secured what it termed “the first of the serious commercial solutions in the form of supplier insolvency insurance which will sit along side the new accreditation scheme ATAS”.

The Travel Compensation Fund is riding rapidly into the sunset and there has been some disquiet among consumer groups and the travel industry about quite what will replace it.

AFTA chief executive Jayson Westbury believes that the newly announced commercial safeguards “provide a solution for the majority of supplier collapses and will go a very long way towards resolving the challenges travel agents face with credit card charge back when a supplier collapses”.

“This new policy to be offered is the first part of the commercial solution that will be available in Australia and I am really excited that ATFA will have delivered a solution to one of the biggest challenges we have faced over the years”, Westbury said.

“I am personally very pleased that we have been able to facilitate an arrangement between insurance broker Gow-Gates, and UK company International Passenger Protection that will offer Travel Agents and Consumers protection against supplier collapse and ultimately travel agent collapse when we launch the second product next year.”

An issued statement by AFTA said that history had shown that when suppliers collapsed “the impact upon both consumers and travel agents is far greater than any collapse within the travel supply chain and this product would not have come to Australia without the reform being delivered under the TITP”.

Chris Mackinnon, Chief Executive of Gow-Gates Insurance Brokers said that being able to secure the support of International Passenger Protection (“IPP”) for the project was a massive win for the Australian travel industry.

“We have been working very hard over recent months with AFTA and IPP to structure these arrangements for the Australian market. IPP are the globally recognised leader in this specialist insurance field, and the knowledge and expertise that they bring to the table is invaluable”, Mackinnon said.

AFTA has conducted a nationwide roadshow educating the travel industry on ATAS and the insurance product now available in Australia via Gow-Gates.

AFTA said it would continue to work closely with Gow-Gates as they look to launch the second of the two insurance products, ATAS Participant Insolvency Insurance, early next year.

Written by William Sykes

Currently there is "1 comment" on this Article:

  1. AgentGerko says:

    Passengers should be required to find travel insurance that covers end supplier collapse. Agents should only be required to provide cover against their own collapse. End suppliers should be required to provide their own, and if customers want to deal with unsecured foreign internet based suppliers then do so at theri own risk. What we’ll end up with is a moral, if not legal, requirement to have insurance cover the cost of which will be far greater than the TCF it replaced.

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