- Low-flying company—Thomas Cook insolvency
- Original news
- Thomas Cook is ATOL protected, but how does ATOL operate and what happens to losses that do not fall in the scheme?
- According to Airline Insolvency Review (March 2019), only around 50% of travel insurance policies provide cover for airline or supplier failures. Can insurers rely on an insolvency exclusion in a travel policy in this instance?
- Is there a risk that such an insolvency exclusion could be considered an unfair contract term?
- What impact could this have on personal injury claims abroad (ie tour operator’s claims)—a potential claimant may have rights under the Third Parties (Rights Against Insurers) Act 2010, but what challenges could there be in enforcing this?
- Are claims by unpaid hotels, uninsured customers and/or claims against the company directors likely to impact the re/insurance market?
- To what extent does the ATOL scheme and extraordinary measures taken by the CAA affect this?
The insolvency at travel agent and operator Travel Cook has caused major worries for holidaymakers, the UK government and insurance companies. Duncan Swift, President of insolvency and restructuring trade body R3, explains what the company’s receivership entails, and the core issues and ramifications for the wider industry.
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