Information for travelers on claims for package travel
Travel agencies as sellers of package travel and linked travel arrangements are obliged to be members of the Travel Insurance Fund, provide a package travel security, and pay a base charge and annual premiums towards the fund.
The Travel Insurance Fund refunds all payments made for package travel or linked travel arrangements that are not performed, partially or in full, as the result of the bankruptcy or insolvency of a travel agency or the revocation of a travel agency licence by the Icelandic Tourist Board. The fund also covers the cost of repatriation of travellers when transportation is part of the package travel contract.
• Definition of package travel
• Definition of linked travel arrangement
Travellers holding claims for package travel or linked travel arrangement, that is not completed, must direct their claims towards the Icelandic Tourist Board that handles all claims on behalf of the Travel insurance fund.
Refunds from the Travel Insurance Fund are limited to the refund for package travel or linked travel arrangements. The purchase of a single travel service, such as the purchase of an airline ticket or accommodation only, is not covered by the Fund. In such cases claims must be directed towards the bankruptcy estate or the company.
When the Icelandic Tourist Board revokes a travel agency license, a public notice is issued calling for claims to be submitted to The Travel Insurance Fund within a specified deadline. Claims must be submitted electronically through a designated online form on the website of the Icelandic Tourist Board.
Further information is available via the email address claims@itb.is.
Claims must be submitted in writing and within two months from the publication of the call to present claims in the Lögbirtingablað. Claims received after the time limit has passed are not considered.
The Icelandic Tourist Board settles approved claims on behalf of the Travel Insurance Fund. Settlement of claims is limited to payments made for travel that is not completed, it does not cover interests or costs of submitting a claim.
Claim holders are informed about the decision of the Icelandic Tourist Board in writing. The time it takes to process claims may vary based on the number and scope of claims.
A decision made by the Icelandic Tourist Board may be appealed to the Minister. Appeals must be made within 4 weeks from the date of notification to the party subject to the decision.
Claim holders are encouraged to check their rights by insurance companies and whether their credit card companies will refund payments made by credit cards.
Further information can be directed to the Icelandic Tourist Board’s online chat or e-mailed to claims@itb.is.
