Package Holidays and Travel Trade Act, 1995


25.—(1) The package provider shall have insurance under one or more appropriate policies with an insurer authorised in respect of such business in a Member State under which the insurer agrees to indemnify consumers (who shall be insured persons under the policy), against—

(a) the loss of all money paid over by them under or in contemplation of contracts for relevant packages, and

(b) where applicable to the package concerned, the cost of repatriation of consumers based on administrative arrangements established by the insurer to enable repatriation of such consumers,

in the event of insolvency of the package provider.

(2) The package provider shall ensure that it is a term of every contract with a consumer that the consumer acquires the benefit of a policy of a kind mentioned in subsection (1) in the event of the insolvency of the package provider.

(3) In this section “appropriate policy” means one which does not contain a condition which provides (in whatever terms) that no liability shall arise under the policy, or that any liability so arising shall cease—

(a) in the event of some specified thing being done or omitted to be done after the happening of the event giving rise to a claim under the policy,

(b) in the event of the failure of the policy holder to make payments to the insurer in connection with that policy or with other policies, or

(c) unless the policy holder keeps specified records or provides the insurer with information therefrom.