Ticket levy to protect holidaymakers

Holidaymakers who choose to fly without travel insurance may now be given protection by a new scheme currently under con

Travel Insurance News - 10/10/2005

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Holidaymakers who choose to fly without travel insurance may now be given protection by a new scheme currently under consideration by the government.

Though most sensible tourists take out a good travel insurance policy before going on holiday, as many as 84 million people fly without proper travel insurance every year, leaving them helpless should the airline they are travelling with go bust.

However, the Civil Aviation Authority (CAA) has put forward plans to put a £1 levy on all ticket sales, so as to provide financial aid for travellers in the case of an airline collapsing.

Liberal Democrat transport spokesman Tom Brake backs the suggestion, explaining: 'The introduction of a levy on all ticket sales would offer passengers financial protection on all flights, as well as having a positive deregulatory impact.

'The travel industry estimates a saving to tour operators and travel agents of up to £100 million a year.'

He adds: 'The current system no longer works and must be replaced.'

The government will consider the CAA's proposals when the new civil aviation bill is debated in the House of Commons.

However, whatever they decide, it is still a good idea to take out a good travel insurance policy, which can protect travellers from other misfortunes, such as accident and injury, which could occur while on holiday.

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