Following the recent high profile collapse of Thomas Cook, it seemed as though holidaymakers with personal injury claims against the defunct travel agent would face a bleak prospect of recovering any compensation.
It appeared that claimants would have to join a long list of creditors who are owed money by the failed travel company after it emerged that Thomas Cook did not have adequate insurance to cover the cost of their claims.
The company had, prior to its liquidation, provided personal injury cover for customers within their holiday package without fully insuring against the cost of potential claims themselves.
However, a capped compensation scheme to support those with personal injury claims has been announced, as mentioned by the Queen in her recent speech to both Houses of Parliament.
The Thomas Cook Compensation Bill will ‘enable the government to administer a capped compensation scheme to support customers of Thomas Cook facing the most serious hardship as a result of life-changing injuries, illness or loss of life for which UK-based Thomas Cook companies would have been liable’, according to briefing material.
Information from the Insolvency Service and Department for Business, Energy & Industrial Strategy had previously stated that it is ‘very unlikely that sufficient funds will be realised from the sale of assets to make payments against these (personal injury) claims.’
A compensation bill is therefore welcomed in order to provide recourse for those with serious long-term needs who may have otherwise been left without any compensation.
It should also be noted that routine claims, not involving serious hardship or loss of life, will not be covered.
If you have suffered an accident and would like specialist advice about the possibility of making a claim please contact our experienced personal injury team – no win, no fee may be available.
Call 01302 320621 or email email@example.com
Author: Ibrahim Alyas