Government plans to set up exceptional Thomas Cook compensation scheme
Business Secretary Andrea Leadsom has today (5 November 2019) announced that the government intends to set up an exceptional compensation scheme for holidaymakers who have outstanding loss of life or serious personal injury claims against UK companies in the Thomas Cook Group.
Last month the Official Receiver identified that prior to insolvency Thomas Cook had been providing personal injury cover for customers as part of its holiday package (as it was required to do) without fully insuring against the cost of potential claims themselves.鈥�
This means it is very uncertain whether they will receive any of the compensation they would have ordinarily received against their claims.鈥�
In an Oral Statement to Parliament, Ms Leadsom said that the government is determined to act quickly to provide reassurance to individuals and families with serious claims and who have suffered life-changing injuries, illness or loss of life, and is exploring all possible ways to make sure these claimants are not left in serious hardship.鈥�
She committed to establishing an exceptional statutory 鈥痗ompensation 鈥痵cheme to ensure that those left with serious long-term needs will be looked after.鈥� It will 鈥痓e a capped fund,鈥� sufficient 鈥痶o ensure鈥� there is鈥� support 鈥痜or 鈥痶hose customers facing 鈥痶he most 鈥痵erious hardship as a result of injuries 鈥痮r loss 鈥痮f life 鈥痜or which 鈥疷K-based 鈥疶homas Cook companies would have been liable.鈥�
皇冠体育app government must strike a responsible balance between the moral duty to respond to those in the most serious need and the responsibility to the taxpayer, so 鈥痳outine claims covering short-term problems will not be covered under the scheme鈥�.
皇冠体育app government will consider a range of options and intends to bring forward any necessary legislation in the new Parliament to close this loophole.鈥�
Further details on the terms of the scheme will be set out in due course.
Read the full oral statement.