Australian travel intermediaries can now invest in a new policy from insurance provider Gow Gates which claims to better protect client funds in the event of fraud or theft.
The Travel Agent Client Trust Account Fidelity Insurance Policy has been devised to protect client funds that have been held in a client trust account, the broker explained.
The new product went on sale on Thursday via the Gow Gates website.
“Properly structured and managed, a client trust account will ensure any funds held at the time of an agent or intermediary failure will be protected for the benefit of clients rather than being lost or partially lost in the wash up of an insolvency event,” the broker said.
But while they can offer protection against insolvency, fraud or theft can remain a “very real” risk, according to Gow Gates. However, it said its new product can eliminate that risk.
“Insurers will pay back on behalf of clients, directly into the client trust account, any money that is lost due to an insured theft or fraud,” it said.
Client trust accounts with Macquarie Bank have been preassessed and approved, but the TACTAFIP product is also available for those held with other banks subject to a security assessment.
