Travellers who have paid up for tour packages to travel agents that later go bust cannot hope for compensation.
Malaysian Association of Tour and Travel Agents (Matta) president Ngiam Foon said local insurance companies could not offer this type of insurance called financial guarantee because it was a Bank Negara directive.
“This means there would be no recourse for travellers caught in such a situation,” he said.
Ngiam was commenting on the recent case of a group of 20 travellers who lost their money when their European tour package was cancelled on the day they were to leave as the travel agency had gone bust.
“There is professional liability insurance that most of our members have and that covers negligence by the agent but not for financial collapse,” Ngiam said.
Meantime , Police have started tracking down the directors of the Excellence Holidays Sdn Bhd that went bust and left at least 20 travellers “high and dry.” The Malaysian Association of Tour and Travel Agents (Matta) has been told to take responsibility for the conduct of the companies, which take part in its fairs.
“We are investigating the case as cheating,” City Commercial Crime chief Asst Comm Mohd Aris Ramli said yesterday.
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