International Passenger Protection (IPP) has suggested that Skiing Europe’s insurance problem could be down to a case of fraud. The insurance solutions provider said that the section 19 of the Package Travel Regulations had been misinterpreted by the travel industry and that the insurance package still provides cover for both full paid and deposit paid customers in the event of a tour operator insolvency. It compared the loophole as equivalent to a travel agency or tour operator displaying an ABTA or ATOL logo even though customers are sold non-bonded holidays. “Fraud is not unique to insurance and could affect all three options of the package travel regulations being bonding, trust accounts or insurance, however section 19 of the Package Travel Regulations makes it clear that a passenger cannot be penalised by the actions of the tour operator,” explained Paul McLean, director at IPP. “Parts of the trade shouldn’t be so quick to dismiss the benefits of Insurance considering its ability to be innovative especially during tough economic times when other out-dated options such as bank bonds are becoming extinct”. He encouraged travel companies to work with UK-based experienced companies which are FSA regulated and rated by a financial institution. The reaction follows AITO’s suspension of its 100% financial guarantee after Skiing Europe collapsed with no insurance. The company’s policy had been taken away following its collapse a month ago.