Guidelines for travellers submitting claims to the Travel Insurance Fund
Who can apply for a refund?
Those who believe they have a claim against the Travel Insurance Fund because they bought a package tour or linked travel arrangement that wasn’t delivered according to contract can submit a claim. The Icelandic Tourist Board handles the processing of claims on behalf of the Travel Insurance Fund.
Travel agencies are required to be members of the Travel Insurance Fund.
What can be refunded?
The Travel Insurance Fund refunds money that travellers have paid for a package tour or linked travel arrangement that is not carried out, in whole or in part, due to bankruptcy, insolvency, or the Icelandic Tourist Board revoking a agency’s license on the board‘s initiative.
The fund also covers the cost of bringing travellers home if transport was included in the package.
- Definition of a package tour can be found here
- Definition of a linked travel arrangement can be found here
Not valid for standalone travel services
The Travel Insurance Fund only covers package tours and linked travel arrangements. It does not refund single services like standalone flights or hotel bookings.
In those cases, claims must be filed with the company’s bankruptcy estate or pursued directly with the company.
How to apply for a refund?
When the Icelandic Tourist Board revokes a travel agency licence on its own initiative or due to bankruptcy or insolvency, a notice is published asking travellers to submit claims within a specific deadline.
Claims are submitted online through island.is, and you must log in using electronic ID.
Claims must be supported by necessary documentation, such as tickets, itineraries, receipts, and similar evidence. The Icelandic Tourist Board determines which documents are considered sufficient to substantiate a claim.
Note that in the claim-submission form you must provide the national identification number (kennitala) of the travel agency against which the claim is directed. It is essential to provide the correct identification number. You can find the identification numbers of travel agencies with active calls for claims under ‘calls for claims’. Only claims relating to the travel agencies listed there will be accepted.
Deadline, settlement, and more
Travellers must submit a written claim (using the claim form) within two months from the date the notice appears in the Official Gazette. Claims submitted after the deadline will not be considered. Claimants are encouraged to familiarize themselves thoroughly with the deadline for submitting a claim.
When are claims paid out?
The Icelandic Tourist Board processes the claims and pays approved refunds on behalf of the Travel Insurance Fund. No interest or additional costs related to claims are paid.Claimants are notified in writing once a decision has been made. Processing time varies depending on the number and complexity of claims.
Decisions made by the Icelandic Tourist Board can be appealed to the Minister. The appeal period is 4 weeks from the date of the decision.
Claimants are also encouraged to check whether they may be entitled to a refund through their credit card provider or insurance company.
