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, and you must log in using electronic ID.
A list of active notices can be found here.
Claims can only be submitted for package tours sold by the travel agencies listed.
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.
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.
Further information
Questions can be sent via the Tourist Board’s online chat or by email to krofur@ferdamalastofa.is.
