Thomas Cook

Debate between Lord Duncan of Springbank and Lord Vaux of Harrowden

Tuesday 5th November 2019 Lords Chamber

[Lord Duncan of Springbank]

The noble and learned Lord raises a point the sad answer to which is straightforward: in this regard Thomas Cook did not set out categories but quantums. Any bills above a particular quantum would be met by the wider insurance, if they were particularly high, but those which fell below, it self-insured. The law allows it to self-insure, so the problem we have now is that, while I wish I could identify individual instances where this could be done, sadly that is not possible. This is why in the new Parliament we will have to look at this very carefully, to ensure that we have an answer to the very question that the noble and learned Lord asked. If we do not do that, of course people will be travelling without the confidence that they are insured when they believe that they are.

[Lord Vaux of Harrowden (CB)]

My Lords, as someone who was caught up in the Thomas Cook situation, I add my commendation to the CAA for the work that it did; it was remarkably smooth. Is it not possible that some of these people may have a claim against not only Thomas Cook but the ultimate hotel or travel provider, or wherever the accident happened? If that is the case, what help can the Government provide to those people to make that claim, rather than the original Thomas Cook claim?

[Lord Duncan of Springbank]

The noble Lord is right that there are issues around more than just the component parts of the holiday because, as an entity, Thomas Cook is not just a single company. It has different named brands that sit underneath that name. The important thing for us here is that this will be through those who have booked a holiday with Thomas Cook, and have experienced severe injury and so forth as a consequence of that booking. In many instances, these are historic payments that will be halted because of the situation. They are not ongoing future payments, although some fit into that category. What is important here is that the manner in which Thomas Cook sought to address those questions will have been part of the initial settlement that Thomas Cook reached. The question we are then taking on is: how do we compensate and match a measure of the liability that was experienced? It will be done through the criteria that we set in primary legislation, which we will afford your Lordships an opportunity to examine in greater detail.