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Simplified procedures for applying travel ex gratia payment
The Travel Industry Compensation Fund Management Board has decided to simplify procedures for claims of ex gratia payments not exceeding $10,000 for each of the outbound travellers affected by a travel agent in the event of default.
The Chairman of the Board, Dr James Kung, said: "Under the new procedures, the average time taken for the Board to grant ex gratia payments to aggrieved outbound travellers will be shortened from over six months to less than two months,
"Under the existing procedure, every application for ex gratia payment must be accompanied by a sealed judgement in respect of the loss concerned, or documents showing that a proof of debt has been lodged or is to be lodged.
"This requirement is intended to safeguard the Fund against possible fraudulent acts. However, it takes considerable time to complete the necessary procedure."
He said: "Instead of requiring proof of debt or a sealed judgement, the simplified procedures will accept applications submitted with original receipts for the relevant outbound fare being franked or stamped to show the payment of the levy, verified by an auditor appointed by the Board.
"An applicant is also required to make a statutory declaration stating that payment of the outbound fare has been made."
Dr Kung noted: "To safeguard the Fund against possible fraudulent or dishonest acts, the Board, however, retains the discretionary power to direct an applicant to apply under the existing procedure and not in accordance with the simplified procedure."
He said: "The Travel Agents Ordinance empowers the Board to make rules specifying the maximum amount or rate payable as an ex gratia payment in respect of an outbound fare.
"Based on past experience, the Board has considered it appropriate to set the maximum amount of ex gratia payment that each person may apply for under the simplified procedures at $10,000.
"Together with the increase in the rate of ex gratia payment from 80 per cent to 90 per cent of the outbound fare implemented last December, the new procedures will further enhance consumer protection," he added.