IATA’s Default Insurance
Programme (DIP) could
be available to all travel
agents in South Africa within
the next few months.
An Iata spokesperson
has told TNW that Iata had
initiated the process for the
formalisation of the proposed
new Local Financial Criteria
for BSP ZA, which has been
submitted to the PAConf
meeting taking place in
Geneva from October 13-15.
If approved, the new financial
criteria will be effective
from February 1, 2016.
Although not part of
the financial criteria, the
introduction of the DIP and
the process for accrediting
a suitable financial security
provider is being managed in
parallel with the review of the
Local Financial Criteria. An
Iata spokesperson told TNW:
“Subject to the ongoing review
process being completed, the
DIP will be made available as
soon as the final approval is
confirmed by Iata, which may
be in advance of the new
local financial criteria.”
The DIP has proved
successful in other parts
of the world as an effective
solution for both airlines and
agents to ensure financial
security but in South Africa
its implementation has
encountered some stumbling
blocks. Already announced
mid-2014, the DIP product
policy document submission
to Iata at that time did not
comply with the Iata Global
Policy Template. As a result,
an independent local legal
review was initiated to ensure
compliance with South
African legal jurisdiction
requirements.
Iata default insurance on the cards within months
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