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Criteria - Standard Claim

A Standard Claim is a claim for travel services that were paid for but not provided as a result of the failure of an Ontario registered travel agency, an Ontario registered travel wholesaler (tour operator) or an airline or cruise line.  The following conditions apply:

  1. You must have purchased your travel services from an Ontario registered travel agency. Whether your travel purchase was in person, over the telephone and/or over the Internet, always ensure the company you purchase your travel services from is registered with TICO.
     
  2. You have not received the travel services purchased due to the bankruptcy or insolvency of either:
    • An Ontario registered travel retailer (travel agency)
    • An Ontario registered travel wholesaler (tour operator)
    • An airline
    • A cruise line

*Please note - the claim filing deadline for a Standard Claim is six months from the date of the failure.

Useful Information about Standard Claims:


What is the eligible claim amount based on for a Standard Claim?

The Compensation Fund only reimburses the amount paid for the original travel services purchased from an Ontario registered travel retailer and not provided due to the bankruptcy or insolvency of either a registered Ontario travel retailer or a registered Ontario travel wholesaler or due to the failure of an airline or cruise line. The Compensation Fund does not reimburse consumers for the cost of the replacement (new) travel services purchased.

Claims and Travel Vouchers or Similar Documents for Future Travel 


Due to the unprecedented impact of the global COVID-19 pandemic, coverage under the Travel Industry Compensation Fund has been expanded (Ont. Reg. 101/20) until March 31, 2024 to include reimbursement of credit travel vouchers, certificates, coupons or similar documents issued for future travel as follows:

REDEEMED TRAVEL VOUCHERS OR SIMILAR DOCUMENTS: If you have redeemed a credit travel voucher, certificate, coupon or similar document for travel services with a TICO-registered travel agency or website and the travel services can no longer be provided due to either the Ontario travel agency, website or Ontario tour operator become bankrupt or insolvent or ceased to carry on business or due to the cessation of an airline or cruise line you may file a claim against the Travel Industry Compensation Fund, subject to the provisions of the Regulation. So long as the consumer has purchased the travel service through a registered Ontario travel retailer, a claim may be filed against the Compensation Fund for the non-provision of travel services,  subject to the provisions of the Regulation.

UNREDEEMED TRAVEL VOUCHERS OR SIMILAR DOCUMENTS: For a temporary period from March 30, 2020 until March 31, 2024, the holder of a credit voucher, certificate, coupon, or similar document issued by a TICO-registered travel agency, website or tour operator that has NOT been redeemed for future travel services because the TICO-registered travel agency or tour operator has become bankrupt or insolvent or ceased to carry on business and that failure is related to COVID-19, you can make a claim against the Travel Industry Compensation Fund subject to the provisions of the Regulation.

UNREDEEMED VOUCHERS OR SIMILAR DOCUMENTS ISSUED BY AN AIRLINE OR CRUISE LINE for future travel are not eligible for reimbursement from the Travel Compensation Fund.

EFFECTIVE APRIL 1, 2024, ALL UNREDEEMED TRAVEL VOUCHERS OR SIMILAR DOCUMENTS that have been issued by an Ontario registered travel agency, website or tour operator for future travel are not eligible for reimbursement from the Travel Compensation Fund.

NOTE:

Travel vouchers or similar documents that were received as a prize, award or goodwill gesture are not eligible for reimbursement from the Travel Compensation Fund.  Example of a goodwill gesture: A travel voucher issued by a tour operator and provided to a consumer in settlement of a complaint regarding customer service issues for travel services that were provided and/or dissatisfaction of previous travel services that were provided .


What is NOT covered for a Standard Claim?

To be eligible, a claim on the Fund must relate to the non-provision of travel services purchased from an Ontario registered travel retailer and not provided due to the bankruptcy or insolvency of either a registered Ontario travel retailer or a registered Ontario travel wholesaler or due to the failure of an airline or cruise line.

The following is a list of some of the areas that are not covered by the Compensation Fund:

  • A claim based on the cost, value or quality of the travel services or alternate travel services.
  • Insurance premiums
  • Payments for travel services, which are not received due to the failure of an out-of-province travel wholesaler (tour operator) or out-of-province travel agency.
  • Counselling fees paid to a travel agency.
  • Travel services received as a prize, award or goodwill gesture.
  • Travel services that were available to be received but that were not received because of an act or failure to act on the part of the customer or of another person for whom the travel services were purchased.
  • Travel services that were obtained with a travel voucher, certificate, coupon or similar document that the consumer did not pay for with cash or by cheque, credit card or other similar payment method, with the exception of travel services obtained by redeeming a voucher, certificate, coupon or similar document.
  • An unredeemed travel voucher, certificate, coupon or similar document issued by an end supplier (airline / cruise line).
  • Travel services that the consumer did not pay for with cash, or by cheque, credit card or other similar payment method. (i.e. air miles and/or points are not eligible for reimbursement).
  • Consequential or indirect damages incurred as a result of the failure to provide the travel services.

Claim Filing Deadline 

Standard claims must be filed within 6 months after the relevant TICO registered travel retailer, TICO registered travel wholesaler or airline or cruise line becomes bankrupt or insolvent or ceases to carry on business.  


Maximum Legislated Claim Amount Per Person 

Payments out of the Fund are limited to a maximum of $5,000 per person. 
 

Maximum Legislated Amount for Payments per Event

The maximum amount that may be paid from the Compensation Fund for eligible claims arising out of an event (i.e. as a result of a failure of an Ontario travel retailer, Ontario travel wholesaler, airline or cruise line) is $ 7 million as follows:

  • Standard Claims -     The maximum amount that may be paid from the Compensation Fund with respect to all standard claims (imminent departures) arising out of an event is $5  million.

  •  Trip Completion Claims -  The maximum amount that may be paid from the Compensation Fund with respect to all trip completion claims (repatriation) arising out of an event is $2 million.

Pro-rated Payment of Claims

 Should the $2 million maximum not be sufficient for the trip completion payments required in the case of a particular event, TICO may make additional payments from the Compensation Fund for trip completion (repatriation) that shall not exceed the $5 million maximum reserved for standard claims as a result of the same event.

Therefore, should the total value of claims surpass the legislated maximum payment from the Compensation Fund, it will be necessary to pro-rate the payment for eligible claims.

Appeal Process 

In the event that the Board of Directors denies a claim, claimants are advised that they have the right to appeal the Board’s decision and request a hearing before the Licence Appeal Tribunal. You will be notified in writing of the Board’s decision. Section 71 of Ontario Regulation 26/05 entitles you to a hearing by the Licence Appeal Tribunal(LAT) with respect to the ineligible amount. Instructions on how to file an appeal with LAT is provided to claimants with TICO’s written notice of the Board’s decision. There is a $100.00 fee payable to the Minister of Finance that must accompany your notice of appeal.