Ministers to have ATOL insurance scheme expanded

The Atol travel protection programme is to be expanded under new reforms.

Travel Insurance News - 03/02/2011

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The government has announced its intention to expand the Air Travel Organisers’ Licensing travel insurance scheme. Under planned reforms the protection will be expanded to cover holidaymakers booking flights and accommodation packages online.

Ministers announced on Thursday that they want to expand existing protection for holiday makers who arrange flights and hotels using online agencies. The aim is to ensure that these customers are also protected in the event of online travel firms collapsing.

Theresa Villiers, the UK aviation minister, today said that the proposed changes would expand protect to approximately six million more holidays. Not only do the reforms mean big changes for the government-operated Atol insurance scheme but they could also result in big changes for the online travel booking industry.

The Department for Transport launched the proposed reforms today. The department said the proposals aim to provide the same level of protection for any travellers who book their flights or hotel packages online as that already in place for travel arranged through tour operators.

The changes will mean independent bookings cost £2.50 more but will mean travellers enjoy better protection. The Atol scheme has operated since 1970. For travellers who book charter flights or package holidays, the scheme provides protection in case travel firms collapse.

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