Transport written question – answered at on 12 February 2009.
To ask the Secretary of State for Transport if he will publish the terms of the original Civil Aviation Authority insurance policy with American International Group on air passenger bonds.
The Air Travel Trust Fund is currently structured to meet tour operator failure costs through a combination of cash, credit facilities and insurance. Cash is received primarily from ATOL Protection Contributions, and Barclays Bank plc provides credit facilities totalling £60 million, which includes a level of liquidity supported by a Government Guarantee.
The insurance policy placed by the Trustees of the Air Travel Trust with AIG UK Limited and Axis Specialty Ltd., is designed to provide the Air Travel Trust with access to funds in the event of a major tour operator failure where costs arising from refund and repatriation exceed £50 million in a year. The policy document is subject to a confidentiality agreement and the insurers have declined permission to disclose the terms of the policy.
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