The increase will come into effect from 1 July 2013 and sees the minimum claims cap rise from £110,300 to £140,000 representing a significant increase in the benefit on offer to ABTA Members. All ABTA principals can claim the higher of three times the level of their annual subscription or £140,000 and the majority will benefit from the increase in the minimum claims cap.
Principal ABTA Members will directly benefit from the claims cap increase, but so too will retailers as the increased confidence in protection for pipeline monies will further reduce the need for separate credit checks or security to be taken by Principals. The increase in the minimum claims cap will be introduced at no extra cost to either ABTA retailers or ABTA Principals.
Mark Tanzer ABTA Chief Executive said “This is a significant increase in the cover on offer from ABTA which will be achieved at no extra cost to our Members. By giving principals access to £30,000 a year extra cover when retailers fail, retailers too will benefit from greater confidence in the system with a consequent reduction in credit control burdens. This is a great example of how we are leveraging the strength of the Association’s scheme of financial protection for the befit of all Members.”
The maximum claims cap for ABTA principals remains unchanged at three times each ABTA Members annual subscription if that is over £140,000. Payments made through ABTA’s direct debit scheme, the Single Payment Scheme, will continue to be protected and all other conditions of the ABTA scheme of financial protection remain unchanged.
