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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 fee and annual fees 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. 

Does not apply to single travel services

Refunds from the Travel insurance fund is limited to the refund of 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.

Filing a claim

A claim is filed online, login with electronic ID is required. An online form must be completed and supporting documents to verify the claim submitted, such as:

  • Tour itinerary
  • Receipts for payments or transfers

The Icelandic Tourist Board determines which documents are sufficient to verify a claim.

If the Icelandic Tourist Board deems that further documentation is needed the claim holder will be contacted.

Real persons (individuals) – claims form:

Real persons log in through the link below using electronic ID (please note the form is in Icelandic).

Krafa einstaklings í ferðatryggingasjóð

Legal person (company) – claims form:

A company representative (holding power of attorney) logs in through the link below, using electronic ID, and selects the respective company (Please note the form is in Icelandic). Directions on how to grant power of attorney to a third party can be found here.

Krafa lögaðila í ferðatryggingasjóð

For those who don´t have an Icelandic ID number, claims should be submitted by e-mail to

Timeframe, settlement of claims etc.

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 of Culture and Business Affairs, Sölvhólsgötu 7, 101 Reykjavík. 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

Further information can be directed to the Icelandic Tourist Board’s online chat or e-mailed to