XN000022-1995-04-26 — Page 15

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As several members had pointed out, there are three basic types of travel insurance available in the market which may give protection to outbound travellers and travel agents, namely: personal travel insurance for individuals, group travel accident insurance for travellers and public liability insurance for travel agents. When travelling abroad, individual travellers may protect themselves by taking out personal travel insurance according to their own needs. The insurance package for individual travellers can be tailor-made to cover death, injury and medical expenses in the event of an accident, as well as loss of luggage, delayed flights, loss of cash, etc. I agree entirely with members who have spoken about this subject that the taking out of such insurance cover is entirely a matter for the individual traveller. The second type of insurance is group travel accident insurance which may enable travellers to claim compensation payments at the earliest opportunity in case of accidents without the need to prove that the travel agent is at fault. This type of insurance may offer protection to travellers as well as travel agents. The third type of insurance is public liability insurance. As a general rule, travel agents are responsible for liabilities arising from the operation of their businesses irrespective of whether they have taken out public liability insurance. Public liability insurance would insure travel agents against possible claims from their clients and enable travellers to get compensation upon proof of negligence on the part of the travel agent.

The Advisory Committee on Travel Agents discussed the question of providing insurance cover for outbound travellers at its meeting in February 1995. The Committee considered the views of the public and the travel industry, submissions received from organisations and individuals, and requirements for insurance coverage in other countries. It recommended that travel agents should be required to take out compulsory group travel accident insurance for their clients initially through changes to the Travel Industry Council's membership requirement, and in the long term through legislative changes. In addition, outbound travellers should have the choice of taking out an insurance policy according to their own needs. Travel agents should encourage their clients to take out insurance to provide additional coverage and to inform them of the details of any insurance coverage included in the travel package. We welcome the recommendations of the Advisory Committee on Travel Agents in principle, and have requested the Travel Industry Council to study the feasibility of these recommendations and come up with firm proposals for our consideration.

The Travel Industry Council has appointed a committee to consider possible options. The committee has held several meetings to discuss the matter, including meetings with representatives of the insurance industry. I understand the Travel Industry Council has finalised its proposals and we are looking forward to receiving them from the Council.