Broker hails rise in bond providers Ian Taylor


A leading travel industry insurance broker has welcomed an increase in bond provision for Abta members, but warned the availability of Atol bonding won’t improve until details of the CAA’s plans for reform are clearer. Abta approved two new bond


providers in March, substantially increasing bonding capacity by raising the number of providers to five (Travel Weekly, March 30). Specialist broker Towergate


Travel, a trading division of Advisory Insurance Brokers, secured an exclusive agreement with one of the two providers, Axa Insurance UK. The other approved provider


is Accredited Insurance Europe. Towergate managing director


Tony Gilpin said: “It’s huge news. There were only three insurers on the Abta-approved list providing unsecured bonding. It took us 12-18 months to negotiate and secure this. Getting Axa on board adds capacity and quality when a lot of Abta members couldn’t get bonding. It will make the market more competitive.” He explained: “Following Covid


we went to 140 insurers who basically said, ‘You’ve had Covid-19, Thomas Cook, Brexit – if there is a sector we don’t want to underwrite it’s travel, due to the uncertainty.” Gilpin noted bond availability


declined rapidly after the CAA dropped bonding requirements for


Dismay after serial fraudster Pollard escapes jail term


Samantha Mayling


News that a former On The Beach director has been spared jail for a series of holiday scams has been greeted with dismay – especially as he had received a suspended sentence for fraud in 2011. Johnny Pollard, 50, from


Prestwich, conned £32,125 from 22 victims for non-existent trips to countries such as Australia, Dubai, Mexico and South Africa between 2016 and 2017. At Minshull Street Crown Court,


Manchester, Pollard was given a 20-month jail sentence last week, suspended for two years, after he


4 13 APRIL 2023


admitted eight counts of fraud. He must also complete 20


rehabilitation activity days and 200 hours of unpaid work. Barry Gooch, chairman of


Prevention of Fraud in Trade (Profit), said he was disappointed by the sentence “bearing in mind he has a previous suspended sentence”. Pollard’s 12-week suspended sentence in 2011 came after he pleaded guilty to fraud against Bookable Holidays. “Courts must be willing to send


a strong message by jailing serial offenders,” said Gooch. “Fraud is not a victimless crime and we pay for it through higher product prices and payment card and insurance charges.”


Judge Ciaran Rankin told Pollard:


“You are nothing more than a conman, a thoroughly dishonest man. There has been considerable financial hardship in many households as a result of your actions.” In mitigation, Pollard’s lawyer


David Morton said simply: “He is appalled by the way he has acted.” One of Pollard’s victims, Neil


White, lost life savings of £9,800. He told Travel Weekly he had expected a custodial sentence for Pollard and was “disgusted” this did not happen. A witness in the case, Francis


Charig, said Pollard had sent invoices using Charig’s name and address. This had led to defrauded families


Getting Axa on


board adds capacity and quality, and will make the market more competitive


most Atol holders in 2007 when it introduced the Atol Protection Contribution (APC) on bookings. He said: “There were probably


15 insurers placing bonds in 2007. When the CAA said bonds were only required for bad risks, insurers left the market. A lot also exited after the Icelandic volcanic ash cloud [in 2010]. “Many insurers don’t have the expertise to underwrite [travel]


bonds. Insurers run for cover at the words ‘travel industry’.” Gilpin warned the additional


providers won’t mean an immediate easing of the bond market for Atol holders, noting: “Insurers say ‘We’ll hold back until we know the reforms.’ They need to understand what to consider. If the CAA wants bonding to be part of its Atol reform, it needs to give appropriate time.” Atol protection includes cover for


repatriation, and Gilpin explained: “The biggest issue for insurers is they can’t have unlimited liability. You can’t put a number on [the cost of] repatriation – that is the problem. You can have people brought back who have no insurance or who didn’t purchase a package holiday.”


Johnny Pollard


travelling from Manchester to confront Charig and his wife. “Claims by his legal team that he


was appalled by what he had done do not ring true,” said Charig. “He is a recidivist, and it is wrong that he hasn’t been incarcerated.” An Abta spokesperson said:


“Unfortunately travel can be a tempting target for fraudsters. Abta has worked over the years with City of London police to raise awareness.” The Chartered Trading Standards


Institute urged consumers to guard against holiday and passport scams as


the main holiday season begins. ● Additional reporting: Cavendish Press (Manchester) Ltd


travelweekly.co.uk


PICTURE: Cavendish Press (Manchester) Ltd


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