Government to set up fund to assist Thomas Cook customers
The Government will set up a statutory compensation scheme for Thomas Cook customers who face losing out on injury compensation claims because of the company’s collapse.
In a Commons statement, Business Secretary Andrea Leadsom said the official receiver has alerted the Government to an “important outstanding matter relating to personal injury claims against Thomas Cook companies impacting customers” who suffered life-changing injuries, illness or death.
She added: “Thomas Cook only took out insurance cover for the very largest personal injury claims. For agreed claims below this figure up to a high-aggregate amount, they decided to self-insure through a provision in their accounts.
“As Thomas Cook has entered into liquidation without insuring any protection for pending claims the vast majority of claimants who are not covered by the insurance, including customers who have suffered very serious injuries and loss of life, will be treated as unsecured creditors.