Your Travel Assurance Fund Contributions
The Travel Assurance Fund is a possible source of compensation for consumers if they didn’t get the travel services they bought. This can be due to the fault of a 3rd party (perhaps the airline went bankrupt) or a contributor to the fund (a licensed travel agent or wholesaler). It is a fund of last resort and to be eligible, consumers must have booked with a licensed BC agent or wholesaler.
All licensed travel agencies, wholesalers and accommodation providers must make payments to the Fund.
Read the Business Practices and Consumer Protection Act, Part 8.
Read the Travel Industry Regulation, Part 3.
When are the contributions due?
There is an initial payment of when you first apply for your licence, followed by contributions for the first three full years of business. Contributions are due at the same time as your financial statements, which is 90 days after your fiscal year end.
You are not required to pay into the Fund after three consecutive years, as long as the Fund balance stays over $2,000,000.
Who is eligible to claim against the TAF & what is required?
Consumers and licensed travel agencies and wholesalers are eligible to claim against the Fund, in certain circumstances. Always confirm that expenses are eligible under the Fund before you reimburse a customer.
Remember:
- compensation is limited to the original travel services paid for and not received
- the maximum amount that may be paid from the Fund is $5,000 for each person covered by the claim
- the maximum amount that may be paid from the Fund for an event is a total of $2,000,000
- claims must be filed within six months of the date of loss
If you are a licensed travel agent
You may be eligible if your customer did not receive the travel services they bought due to the failure of an end supplier, and you prevented the customer’s loss by either reimbursing or providing alternative travel services at your own expense.
To claim against the Fund, you must:
- provide proof that money was paid to the end supplier
- show that you made a reasonable effort to obtain compensation first from the credit card company (if paid by credit card), an insurer, or other available sources.
- provide proof that you reimbursed the client or provided alternate travel at your own expense.
If you are a licensed travel wholesaler
You may be eligible if you prevented consumer loss by either reimbursing or providing alternative travel service at your own expenses to the consumer who purchased travel services from a BC licensed travel agent.
To claim against the Fund, you must:
- confirm that you prevented consumer loss after not receiving some or all of the payment from the travel agent.
- provide proof that you reimbursed the client or provided alternate travel at your own expense.
File a claim against the Travel Assurance Fund (for licensed agents & wholesalers).
Understand the claim process for consumers.
