DIP gives guarantees back to agents

Charmaine Brogden of
Jack & Seach Insurance
Brokers, the agent
appointed to administer
the Default Insurance
Program (DIP) on behalf
of the insurer, Lloyd’s
of London, is pleased
to announce that just
under R20m of bank
guarantees have been
released to travel agents
after being held by
Lloyd’s of London for 12
months.
 The release of the
bank guarantees
means agents have
more liquidity to deal
with the day-to-day
competitiveness of the
industry. The release of
the bank guarantees has
assisted with building
trust between the DIP
and travel agents.
 There has been a lot
of enthusiasm around
the DIP in 2017. So far,
Charmaine has secured
33% of the market.
Charmaine says the
DIP suffered two claims
in the first 12 months
of the DIP scheme.
Defaulting agents have
been scrapped from the
DIP. There is no increase
in the cost of the DIP
for the time being; the
DIP cost will remain at
R11,00 per cash ticket
issued until further
notice.
 The initial confusion
about posting a
guarantee with the
DIP has seemingly
dissipated as the word
has spread amongst
travel agents.
 The expectation is
that many more travel
agencies will join the
programme imminently.
 Contact Charmaine
Brogden on charmaine@
jackandseach.co.za