Travel Agent & Intermediary Failure Insurance

What does TAIFI cover?

Travel Agent & Intermediary Failure Insurance (TAIFI) has been specifically designed for ATAS accredited companies to provide protection for your customers’ funds in the event of your insolvency.  The cover provides financial protection to your customers for any funds lost as a result from the insolvency of your business up to the maximum policy limit, set out in the policy wording.
 
We understand that each business is unique and for that reason maximum policy limits will be customised to meet your individual needs, and your activities will be monitored and coverage limits adjusted throughout the year to ensure that all of your customer’s funds are protected.
 

Who is the Insurer of TAIFI?

TAIFI is offered by Liberty International Underwriters Australia, through its appointed binding agent, International Passenger Protection Limited (IPP) (Incorporated in the UK.) Liberty International Underwriters is a trading name of Liberty Mutual Insurance Company (ABN 61 086 083 605), Incorporated in Mass. USA. (The liability of members is limited.)
 

What is the cost of TAIFI?

There are no set rates for TAIFI, each company is rated individually based on its own individual financial strength assessment. Premiums are set on a per company per year basis and reviewed annually. Premiums are subject to local Stamp Duty and GST at the prevailing rate applicable.
 
 

Will I be required to provide security as part of my application?

In most circumstances no, unless IPP feel your financial position is too weak in which case we will discuss options available to you so that you still have the possibility of being accepted for cover.
 

Do sales need to be declared as I trade?

Although IPP base their assessment of cover for agents on their last 3 years trading they do require agents to complete a simple online sales declaration. Larger agents will be able to submit a monthly declaration.
 
 

Is TAIFI available to non ATAS Accredited Companies?

No, TAIFI has been specially arranged for ATAS accredited agents and is based on complimenting further the benefit of ATAS accreditation.
 

If my company is insured by TAIFI will I be required to inform my customers?

Yes, you are obliged legally to inform customers that you have taken out an insurance policy to cover monies while in your possession in the event of your insolvency for their benefit. It will naturally be to your advantage to show your customers that protection is in place for them if they book through your company as opposed to another agent who does not have such protection.
 

Can I charge customers for this insurance?

No, you are the Policyholder and Insured and will have to pay the premium. You are not permitted to pass the charge on for TAIFI as it will be regarded as a regulated activity and unless you are regulated you will be committing a criminal offence. The cost of this insurance will naturally become another company running cost to factor into your business.  This may mean that you might, for example, increase your service fee or other related charges that you already apply to client bookings.
 
 

Will there be a list of TAIFI Insured Companies?

Yes, IPP will be listing companies whom have purchased TAIFI on their website.  This list will be available for AFTA and other trade and public bodies.
 

How do I apply?

Simply complete the application form, located under Documents in the right column, and submit with supporting documentation and return to:
 
Travel Industry Division, Gow-Gates Insurance Brokers – travel@gowgates.com.au
Level 8, 491 Kent Street, Sydney NSW 2000.
POSTAL : GPO Box 4731 Sydney NSW 2001.
TELEPHONE: 02 82679999 / FAX: 02 82679991
 
Due to the nature of this product, it will be necessary for detailed financial information to be provided for IPP to assess your financial viability and accept your risk.
 
Once Gow-Gates receive your application form, and it is fully completed along with all requested additional documents, they will process the application through International Passenger Protection Limited.
 

How long will the application process take?

Providing all documentation has been received and fully completed the application will immediately be acknowledged by Gow-Gates. From the time Gow-Gates receive your application you should receive a decision and quotation within 2 weeks and any request for additional information within 7 days.
 

Is there an application fee?

Yes – due to the high administrative process of evaluating applications and reviewing financial statements there is a nominal application fee charge of AUD$100.00, payable to IPP, which is refundable once cover is bound.
 

Other Insolvency Protection Policies

Applicants can separately increase protection further for their customers and themselves by protecting monies once passed onto end suppliers i.e. Scheduled Airlines and  Car Hire Companies etc, (something the previous national scheme did not offer protection for and a first in the Industry) by applying separately for Scheduled Airline Failure Insurance and End Supplier Failure Insurance.
 
Agents can apply by contacting Travel Industry Division (travel@gowgates.com.au) , Gow-Gates Insurance Brokers, Level 8, 491 Kent Street, Sydney NSW 2000. TELEPHONE: 02 82679999 / FAX: 02 82679991.