Questions and answers How the Federal Government helps Thomas Cook victims

Bonn · The damage that the bankruptcy of Thomas Cook caused for customers is greater than the liability limit. For this reason, the Federal Government is now assuming the uncovered compensation claims.

 Passengers board a plane of the airline Thomas Cook at Crete airport. The federal government wants to help package holidaymakers financially.

Passengers board a plane of the airline Thomas Cook at Crete airport. The federal government wants to help package holidaymakers financially.

Foto: dpa/-

The Federal Government assumes uncovered compensation claims. Zurich Insurance is now starting to reimburse 17.5 percent of the claims. The most important questions and answers:

Can customers who have suffered as a result of the insolvency of Thomas Cook now expect their claims to be settled in full?

The Federal Government promises that all claims not covered by the insurance of Thomas Cook or other credit card companies will be covered. "Package travelers have trusted that the security certificates issued would cover their losses in the event of insolvency," the government announced after a cabinet meeting.

Zurich Insurance, which is responsible for settlement, is now beginning to reimburse the loss. The insurance company estimates that the claims filed amount to EUR 287.4 million. They thus significantly exceed the liability limit of 110 million Euro. According to Zurich, each affected party will therefore receive only 17.5 percent of his claim. If the loss were 2000 Euro, this would only be 350 Euro. For the rest, however, the federal government wants to step up.

Do those affected now have to take action on their own initiative?

First of all, the injured parties should keep calm. A Zurich spokesman points out that the insurance now begins with the reimbursement and will write to each affected person. In view of the many individual cases, the payment will take some time. Those affected would not have to do anything on their own. The federal government also advises to wait and see.

"The customers do not have to become active up-to-date, in order to protect their rights , say a speaker of the Federal Ministry of Justice. The federal government intends to announce more detailed information about the planned procedure at the beginning of next year. For the completion a simple and as free as possible procedure is aimed at, describes the speaker.

When can claims be expected to be reimbursed?

While the insurance company is now starting to reimburse the claims, there is still no timetable for the federal share. It will probably not go fast, since first of all all claims have to be collected. Customers will also have to cede their rights to the federal government in return for the payment, so that the state can enforce them against third parties such as Zurich Insurance. This would require the registration of all injured parties.

Does the taxpayer have to pay for the travel company’s bankruptcy?

That's the way it is. The general public assumes the costs for the remaining damage. Based on the total loss of 287.4 million Euro and the ratio of 17.5 percent, the taxpayer would be left with a remaining amount of 237 million Euro.

Why does the federal government assume the financial risks of private leisure activities in this case?

The Federal Government sees a number of unresolved and complicated legal issues around the insolvency of the organiser. "It is unreasonable for customers to have to deal with the clarification on their own," the Cabinet explains its decision.

This includes the question of whether the liability sum was calculated correctly at all. Another decisive factor was probably the danger that the state's liability could be enforced by plaintiff customers because the German government had not fully implemented the EU travel directive, but had allowed a much too low liability cover. The legal service provider Myright wanted to file a class action lawsuit next week.

How do consumer protectors and politicians assess the surprising twist in the Thomas Cook case?

The Federal Association of Consumer Organisations (VZBV) welcomes the decision. "It's good that the Federal Government won't let injured consumers down," says vzbv boss Klaus Müller. It is important that customers now get their money quickly. The FDP rejects state compensation. "It is not acceptable to nationalise risks and privatise profits," criticises deputy party leader Michael Theurer.

(Original text: Wolfgang Mulke; Translation: Mareike Graepel)

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