The Package Travel, Package Holidays and Package Tours Regulations 1992

Insurance

19.—(1) The other party to the contract shall have insurance under one or more appropriate policies with an insurer authorised in respect of such business in a member State under which the insurer agrees to indemnify consumers, who shall be insured persons under the policy, against the loss of money paid over by them under or in contemplation of contracts for packages in the event of the insolvency of the contractor.

(2) The other party to the contract shall ensure that it is a term of every contract with a consumer that the consumer acquires the benefit of a policy of a kind mentioned in paragraph (1) above in the event of the insolvency of the other party to the contract.

(3) In this regulation:

• “appropriate policy” means one which does not contain a condition which provides (in whatever terms) that no liability shall arise under the policy, or that any liability so arising shall cease:—

  (i)

  in the event of some specified thing being done or omitted to be done after the happening of the event giving rise to a claim under the policy;

  (ii)

  in the event of the policy holder not making payments under or in connection with other policies; or

  (iii)

  unless the policy holder keeps specified records or provides the insurer with or makes available to him information therefrom.