Press release from SATIB Risk Management Consultants

SATIB SEALS TOUR BROKER CONFIDENCE

In-bound tour booking agents are becoming increasingly cautious in their dealings with Southern African tour operators or ‘ground handlers' specifically in relation to compliance with the European Community Directive 90/314/EEC relating to the Package Holidays and Travel Trade Act, 1995.

The Act ensures the civil liability of package tour organizers or retailers operating within the European Union member states and offers effective protection to consumers for damages suffered as a result of the consumer's reliance on the contents of the package holiday brochure.

“While South Africa is obviously not a member state of the European Union, local ground handlers can be held liable under the Directive by virtue of their liability assumed by contract” says Brian Courtenay, CEO of Safari and Tourism Insurance Brokers (SATIB). “Even if a local operator, performing under contract to an EU principal, does have Public Liability insurance in place, but the policy does not extend to cover the EC Directive, the insurer may repudiate any claims arising against it” he says. “It is for this reason that we sought our ‘Safarigard' public liability underwriting in the Lloyd's market, from the outset it has enabled us to offer our clients appropriate cover while simultaneously ensuring the inbound booking agents peace of mind”.

Passenger Liability is another area that in-bound tour brokers want reassurance on. “We have discovered that some local tour operators are using Multmark III commercial motor policies as proof of insurance to brokers' says Des Langkilde, Marketing Manager at SATIB. “These policies specifically exclude carriage of ‘Fare Paying Passengers', which would result in a claim being repudiated on both the passenger and motor clauses in the event of a claim being instituted against a tour brokers contract”.

“To address these concerns we have developed an innovative ‘seal of approval', which our clients can use on their correspondence to bear testimony to the fact that their insurance cover complies with basic tourism insurance requirements including minimum cover levels of R5 million. We have had several requests from our clients to use our SATIB logo for this purpose, but we believe that this purposely designed seal will offer more appropriately specific criteria and meet the needs of both in-bound tour brokers and our local tour operators” says Des.

The logo seal, which has been endorsed by the Southern Africa Tourism Services Association (SATSA) is available to all SATIB Public Liability and Passenger Liability policy holders who comply with the minimum cover limit requirement and will be extensively promoted to the inbound tourism trade to gain the necessary exposure and clarification of purpose.

(Ends) No. words: 431. Issued: July 2004

Issued by: Des Langkilde
Marketing Manager
Safari & Tourism Insurance Brokers ( SATIB)
13 Grantham Office Park
Keynsham Avenue
Somerset Park
Umhlanga Rocks
4319 

Tel: (031) 562-1880 ext. 115
Fax: (031) 562-1886/7
E-mail: des@satib.co.za
Website: www.satib.co.za