The work of travel companies is carried out within the framework of the current legislation and without fail requires the availability of financial instruments to protect consumers from possible monetary losses. One of them is the availability of a tour operator liability insurance contract.
Parties to the agreement
Signing a document implies an agreement between the profile company and the travel agency in paying compensation to third parties. Before offering liability insurance for tour operators, the insurer is required to have a permit for this type of activity. The policyholder (travel agency) is obliged to conclude an agreement and shift part of its liability for the incomplete or poor-quality provision of tourism services to a financial company.
Compensation for losses incurred is made to third parties, namely the clients of the tour operator. When purchasing a tourist product, a company client can make sure the travel agency has such a document in order to be sure that the civil liability insurance contract is valid.
Insurance object
In this type of contract, the role of the insurance company is clearly defined. The object of the policy prescribes liability insurance for tour operators, which as a result of their activities may suffer financial losses. Such expenses may appear in a travel company in cases where it will be necessary to compensate its customers for losses incurred through the fault of the travel company.
Insurance case
Events for which the insurer's liability begins are clearly defined in the tour operator's liability insurance policy. These include the situation as a result of which a travel company must compensate its client for expenses for poor performance by the travel agency of its responsibilities. This applies to other persons affected by the actions of the tour operator. A prerequisite for receiving reimbursement from a financial company is a valid insurance contract. Otherwise, the tour operator is obliged to make a payment on their own account.
The following shall be considered as an insured event under an operator liability insurance contract:
- failure to fulfill travel agency obligations related to transportation, delivery, accommodation, settlement of clients;
- serious flaws in the tourist route that are directly related to the safety and quality of the trip are present.
Insurance payment
The amount of the contribution for obtaining insurance coverage depends on the tariff and the amount of financial security, the amount of which is determined at the legislative level. So, for travel agencies that specialize in domestic and international travel, the insurance amount cannot be less than ten million rubles. At the same time, if such tours are carried out domestically, then such financial support is five hundred thousand rubles.
The tour operator liability insurance rate also varies depending on several indicators, namely:
- term of work in the tourist market;
- the number of contracts concluded;
- type of tours (international or domestic);
- the number of complaints and complaints from customers.
The minimum tariff is 0.5% and can reach ten percent, given the situation in the tourist space.
Insurance contract
An agreement between a financial company and a travel agency is concluded for a period of at least one year. The document should indicate the data of the parties, insured events, the amount of the insured amount, the insurance payment and the procedure for its transfer, the payment procedure and the conditions for refusing compensation, the rights and obligations of all participants in the policy.
Under additional agreements, the tour operator can increase the possible risks and shift the responsibility for their attack on the insurance company for a fee.
Insurance Compensation
Under the tour operator's liability insurance contracts, the client’s funds are returned to the company’s client at the expense of the insurer:
- for re-obtaining a visa, extending its terms and trip;
- for the purchase of tickets, additional costs for the hotel, other conditions stipulated by the tourist agreement;
- on a planned but not completed excursion;
- additional expenses that exceed the amount specified in the agreement to participate in the tour.
According to the signed documents, the insurance company is obliged to compensate for the damage that has been caused to the clients of the travel company within thirty days. The amount of such payment may not exceed the insurance amount, regardless of the size of the investment.
In order to receive a refund of the money spent, the client of the tourist organization is obliged to formalize everything officially with the presentation of the originals of all documents, witnesses of the situation. A claim for compensation may be directed to a tourism organization, an insurer, and two entities at the same time. Also, the consumer has the right to demand compensation for moral damages.
Denial of payment
A financial company has the right to refuse compensation for tour operator liability insurance for the following reasons:
- being late for a flight or not appearing as a tourist;
- loss of documents and expenses for their restoration;
- change of travel terms or refusal of it;
- personal circumstances (deterioration in the health status of a client of a travel company, non-receipt of a visa permit);
- independent purchase of other tickets or hotel rooms that are not foreseen by agreement);
- expenses related to the disclosure of confidential data.
If the tourist organization disagrees with the claims made by the tourist, the question of possible reimbursement of expenses should be considered in the court. Only after the court decision is announced, the insurance company under the tour operator’s civil liability insurance contract will be able to legally pay.
The presence of a tour operator's liability insurance agreement guarantees a high level of quality service, which deserves the trust of regular and potential travelers.