The Chairman of the General Insurance Council, the Hong Kong Federation of Insurers (HKFI), Mr Jimmy Poon, met with the Chairman of the Travel Industry Council of Hong Kong (TIC), Mr Michael Wu, today (Tuesday,14 June 2011).

At the meeting, Mr Poon expressed serious concerns of the insurance industry about the new rules announced recently by the TIC regarding refunds for trip cancellations (TIC’s Directives No 177 and 203).  Specifically, there is an obvious gap between the perils leading to trip cancellations as classified by the TIC and what insurance can do to provide suitable coverage.

Following the meeting, there was a common understanding that:

• The TIC fully recognized that not all of the situations referred to under the new rules could be covered by insurance;

• Travel operators would continue, where necessary, to try and seek recovery of funds from transport service providers, i.e., airlines, cruise liners and train companies, on behalf of consumers in line with the existing practice; and

• In the longer term, the TIC will step up its dialogue with service providers to establish a proper and transparent refund mechanism to protect the interests of consumers.

Mr Poon said the meeting was useful and constructive.  “It helps remove any misconception that all of the potential risks related to cancellation of trips as defined by the TIC can be addressed by travel insurance,” said Mr Jimmy Poon, Chairman of the General Insurance Council.