Supplier insolvency cover

Although agent or tour
operator insolvency is not
currently covered by travel
insurance premiums in SA,
supplier insolvency does
form part of most generic
policies, offering clients the
ability to recoup funds should
a client’s travel arrangements
be affected by airline, cruise
line, hotel, car rental, rail or
coach operator insolvency.
Jason says TIC’s standard,
comprehensive, senior, youth
and business plans include
travel supplier insolvency
cover ranging from
R10 000 to R25 000 per
policy. This benefit is a
standalone risk with its own
limit that remains separate
from policy cancellation cover
benefits.
Jason said claim
procedures were very
straightforward if a small
supplier were to declare
insolvency. However, in the
event of the insolvency of a
large airline or supplier, the
procedure would be more
lengthy, due to the processes
that would have to be set up
to handle an influx of tens
of thousands of passenger
claims