Thomas Cook

Lord Mackay of Clashfern Excerpts

Tuesday 5th November 2019 Lords Chamber

[Lord Duncan of Springbank]

It is an important question to understand. The notion of a cap is to look at it the other way around. We need to look at the definition of the challenges which are being experienced and let those be the criteria by which the ultimate cap is established, because the important thing is to work out who falls into the category of those severely injured, incapacitated or who have lost life. That would be assessed first, and will ultimately determine the cap, but it cannot be open-ended, because by its nature it must balance out the needs of taxpayers alongside our commitment to those who have suffered through this. Regarding the wider question of the evaluation, if the noble Lord will allow me, I will write to him specifically on that point, as I am not clear on the answer.

[Lord Mackay of Clashfern (Con)]

Can my noble friend tell us the nature of the liability that was not covered by insurance? People need to know that; after all, some will be going on their Christmas holidays in circumstances such as this, and some may be going earlier for other reasons. We need to know exactly what gave rise to this uninsured liability. I do not know whether Thomas Cook did, but most travel agents require you to have travel insurance. This must be some kind of claim outside the scope of ordinary travel insurance. If there is an identifiable category that is apt to recur, people need to be warned of it.

[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.