Revamp of ATOL holiday scheme announced

The government has announced plans to upgrade the ATOL holiday protection plan to widen coverage.

Travel Insurance News - 07/07/2011

<< Tiger Airways and regulators talk about grounding | Travel News | Dozens killed in Indian train crash >>

The ATOL (Air Travel Organisers’ Licensing) travel protection scheme already provides security for large numbers of holidaymakers. The programme could soon, however, provide coverage to millions more Britons, after the government announced plans to revamp the system with a view to expanding the protection to many more travellers.

The ATOL protection traditionally provides assurances for customers of firms selling package holidays. Under the scheme, Britons are protected against the risk of their tour company collapsing after they have booked or have headed off on their holidays.

In recent years, however, an increasing number of vaccations have fallen outside the coverage provided by the existing ATOL initiative; many consumers have ended up without any protection.

The government has announced that it is seeking proposals to upgrade the system. The changes could widen protection to another six million holidays.

Theresa Villiers, the aviation minister, said that despite there being a very low risk of holiday companies going under, the impact on people affected by these rare collapses can be huge. She added that events in recent years have shown just how important such protection is for holidaymakers.

She added, however, that it had also become clear that the ATOL programme urgently needs to be reformed. Ensuring consumers are adequately protected against the various problems that can crop up with or on holidays has been a constant theme in recent years.

<< Tiger Airways and regulators talk about grounding | Travel News | Dozens killed in Indian train crash >>