Are travel organisers required to carry travel insurance for customers?

In the realm of organising holidays and excursions, the safety and comfort of travellers are paramount. The Package Travel and Linked Travel Arrangements Regulations 2018, often referred to as the Package Travel Regulations, serve as a framework designed to protect consumers booking package holidays. A common question that arises is whether travel organisers are mandated to carry travel insurance on behalf of their customers. To grasp this, it is important to delve into the responsibilities and requirements outlined by the regulations.

Firstly, the Package Travel Regulations do not explicitly stipulate that travel organisers must provide travel insurance for consumers. However, organisers must ensure a certain level of financial protection and support for travellers against unforeseeable circumstances, such as insolvency or service failures connected to the package holiday.

Under these regulations, travel organisers are required to provide evidence of protection against their own financial insolvency. This typically involves ensuring that consumers can either be reimbursed for payments made or repatriated in case the organiser goes bankrupt. The financial security often manifests as bonding or arranging protection through insurance policies or trust accounts, but it's crucial to note that this is not equivalent to individual travel insurance for personal incidents or medical emergencies.

Though not mandatory, travel organisers are encouraged to inform consumers about the importance of obtaining comprehensive travel insurance separately. This insurance ideally covers elements such as medical expenses, personal liability, loss or theft of belongings, and cancellations due to specific unforeseen events, which are not inherently covered by the organiser's financial protection measures.

Furthermore, it's beneficial for consumers themselves to be proactive in securing suitable travel insurance that aligns with their needs. Organisers typically provide clear information and guidance on recommending this, ensuring that travellers are aware of potential risks and the necessity of personal coverage in light of their holiday plans.

In summary, while the Package Travel Regulations oblige travel organisers to implement financial protection mechanisms, these do not extend to encompassing travel insurance for each individual customer. The onus rests with the traveller to take the appropriate steps to purchase personal insurance coverage, safeguarding their journey against a myriad of potential risks. Consumers are thus advised to thoroughly explore and secure a policy that comprehensively addresses their specific concerns and requirements, complementing the financial protection afforded by the organiser.