The Ontario Travel Industry Compensation Fund FAQ

Fund overview
The Ontario Travel Industry Compensation Fund compensates consumers who made payment to an Ontario registered travel agency for travel services but who did not receive the travel services because of the bankruptcy or insolvency of an Ontario registered travel agency, an Ontario registered travel wholesaler, an airline or a cruise line. In the event that your Ontario registered travel agency or travel wholesaler goes out of business or you do not receive your travel services due to the failure of an airline or cruise line, you may be eligible for reimbursement of up to $5,000 per person, subject to the provisions of Ontario Regulation 26/05 made under the Travel Industry Act, 2002.

Effective July 1, 2010, claims may be filed against the Compensation Fund to provide the reimbursement of reasonable expenses incurred (transportation, accommodation and meals) to complete a trip where the travel services have not been provided as the result of the closure of a TICO registered travel retailer or a TICO registered travel wholesaler.  Provided that the consumer purchased their original travel services from an Ontario registered travel retailer, trip completion claims may be eligible when the consumer's travel services commenced prior to the failure of the TICO registrant and the consumer is in destination and unable to receive the travel services purchased to complete their travel plans.  For more detail as to the eligibility requirements for a trip completion claim - please click here.



How is the fund financed?
The Fund is totally financed by registered travel agencies and travel wholesalers in Ontario. All travel agencies and travel wholesalers that are located in the province of Ontario are required to be registered with the Travel Industry Council of Ontario (TICO) and to contribute to the Compensation Fund.




Is my travel agency (or travel wholesaler) registered?
All travel agencies in Ontario are required to be registered with TICO. A travel agency's certificate of registration should be available upon request at the premises of the agency. If you are unsure whether the agency you are dealing with is registered, you may contact TICO or use the Travel Agency Search on TICO's website to search for the travel company and ensure it is registered. Be sure to make your cheque payable to the registered company.




What happens if I deal with an unregistered travel agency?
Should you transact business with an unregistered travel agency, you will forfeit the protection of the Ontario Travel Industry Compensation Fund.  Again, if you are unsure whether the travel agency is registered, call TICO or use the Travel Agency Search on TICO’s website to access TICO’s registrant database.




What is covered by the compensation fund? 
The Fund reimburses for “travel services” purchased through an Ontario registered travel agency, which were not provided due to the bankruptcy or insolvency of either a registered Ontario travel retailer or a registered Ontario travel wholesaler. The Compensation Fund also reimburses consumers who have purchased their travel services from a registered Ontario travel agency but have not received their travel services due to the failure of an airline or cruise line. The Travel Industry Act, 2002 defines “travel service” to mean “transportation, sleeping accommodation or other service for the use of a traveller, tourist or sightseer.”

Effective July 1, 2010, claims may be filed against the Compensation Fund to provide reimbursement of reasonable expenses incurred (transportation, accommodation and meals) to complete a trip where the travel services have not been provided as the result of the closure of a TICO registered travel retailer or a TICO registered travel wholesaler.  Provided that the consumer purchased their original travel services from an Ontario registered travel retailer, trip completion claims may be eligible when the consumer's travel services commenced prior to the failure of the TICO registrant and the consumer is in destination and unable to receive the travel services purchased to complete their travel plans.  It should be noted that an individual is not eligible to be reimbursed if he or she was notified that the Statutory Director has made alternate travel arrangements to repatriate him or her  (pursuant to Section 69 of the Regulation) and the individual did not take advantage of those travel services arranged though it was possible to do so.   
 For more detail as to the eligibility requirements for a trip completion claim - please click here.

What is not covered by the compensation fund?
To be eligible, a claim on the Fund must be related to the non-provision of travel services and not due to the cost, value or quality of the travel services or alternate travel services.

Payments for travel services, which are not received due to the failure of an out-of-province tour operator, travel wholesaler or travel agent, are not protected.

Items not eligible for compensation from the Fund include: insurance premiums; the cost of alternate (replacement) travel unless related to a trip completion claim; discount certificates; vouchers; prizes; or any goodwill gestures used in lieu of a payment by cash, cheque or credit card.

Your travel services may be subject to terms and conditions. If you cancel your travel services, the non-refundable payments are not eligible for compensation from the Fund.



How do I know the terms and conditions of my travel services?
Your travel agent is required to provide you with full details of the terms and conditions of the travel services at the time of purchase.  Additionally, every travel wholesaler’s brochure will contain the terms and conditions specific to that company.




Was insurance offered?
Under Ontario Regulation 26/05, all travel agents are required to advise their customers of the availability of trip cancellation insurance and if applicable, out of province health insurance. Your receipt from the travel agent must specify whether this insurance was accepted or declined.



What documentation and information should a travel agent provide?
Once you have made a payment to your travel agent for travel services, the agent is required to promptly provide you with a receipt. The receipt should include such as information as:

• your name and address and the name and address of each person on whose behalf payment is made; the date of the booking and the date of the first payment
• the amount of the payment and the balance owing, if any;
• the business name, address, and telephone number of the travel agent;
• the name of the company supplying the travel services;
• the initial destination and the dateof departure;
• a brief description of the travel services purchased;
• whether or not the consumer purchased or declined trip cancellation insurance and/or out-of- province health insurance, if applicable;
• the serial number of the receipt; and
• the agency is also required to advise each customer, in writing the typical information and travel documents that will be needed for each person for whom the travel services are being purchased.

What should I do?

Be sure that your travel agent is registered with TICO. Only purchase travel services through a company holding a retail travel registration.

• Obtain a receipt and keep receipts and/or invoices for all transactions. These documents must outline details of the travel services that you have purchased.
• Retain all original documents including receipts, invoices, returned cheques, credit card slips, credit card statements, in case you need to file a claim.

Rely on your travel agent. Should problems occur, contact your travel agent immediately to assist you.

.

How do I make a claim?
To apply for compensation through the Ontario Travel Industry Compensation Fund, call or write for a claim form to:

The Travel Industry Council of Ontario 
2700 Matheson Blvd. E. 
Suite 402, West Tower
Mississauga, Ontario 
L4W 4V9
Tel: (905) 624-6241 
Fax: (905) 624-8631 
Toll free: 1-888-451-TICO
E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it



I purchased my travel services using 'points'. Are they eligible for reimbursement from the Compensation Fund?
No.   Any travel services that were not paid for with cash or by cheque, credit card or other similar payment method are not eligible for reimbursement from the Compensation Fund.



I was provided with a credit on file by an airline prior to its collapse for use at a later date. Can I file a claim for the credit?
No. As a general rule, credits are provided to consumers who either cancelled their travel services for a variety of reasons or who had flights cancelled by the airline due to bad weather conditions. Airlines are not obligated to provide alternate travel services or compensation. These non-refundable tickets have no cash value and are not eligible for reimbursement. The current legislation states that a customer is not entitled to be reimbursed for consequential or indirect damages incurred as a result of the failure to provide the travel services.



I purchased my tickets online directly with the airline and the airline is now bankrupt. Can I file a claim?
No.  Any travel services purchased directly with an airline are not eligible for reimbursement from the Compensation Fund.

What do I do if I get stranded when an airline goes bankrupt?
In the event that you get stranded in destination due to the failure of an airline, you will be required to purchase new tickets in order to continue with your travel plans. You can then file a claim on the Compensation Fund for the original travel services purchased and not provided.

I had to purchase new tickets at a higher cost due to the bankruptcy of the airline.  Can I claim for the difference in cost?
No.  The Compensation Fund does not cover claims that are based on the cost, value or quality of the travel services or alternate travels services that were provided.

My travel agent purchased my travel services through a travel company not registered in Ontario.  Will the Compensation Fund reimburse me in the event that the unregistered travel company ceases operations and I do not get my travel services?
No.  The Compensation Fund only covers the non-provision of travel services as a result of the bankruptcy or insolvency of an Ontario registered travel retailer, travel wholesaler or an airline or cruise line.  It does not cover claims due to the failure of an unregistered travel company or end supplier (i.e. car rental company, hotel) other than an airline or cruise line. 

I was dissatisfied with the services I received in destination. Do I have an eligible claim against the Compensation Fund?
No.  Claims that are based on the cost, value or quality of the travel services or alternate travel services that were provided are not eligible for reimbursement from the Compensation Fund.

Can I claim against the Compensation Fund for the non-provision of travel services due to weather, a strike, mechanical problems or force majeure?
There is no provision under Ontario Regulation 26/05 to allow a claim against the Compensation Fund when the travel services are not provided due to weather, a strike, mechanical problems or force majeure.  The Compensation Fund can only reimburse consumers who have purchased their travel services from an Ontario registered travel agency and who have not received the travel services due to the bankruptcy or insolvency of an Ontario registered travel retailer, travel wholesaler or due to the cessation of an airline or cruise line.

I live outside of the province of Ontario.  Can I still obtain the protection of the Compensation Fund when I purchase my travel services from an Ontario registered travel agency?
Yes.  There is no residency requirement to have an eligible claim against the Compensation Fund.  No matter where a person resides, if they purchase their travel services from an Ontario registered travel retailer, they will benefit from the consumer protection provisions found under the Act and Regulation.

Who should complete the claim form?
The individual who made payment to the Ontario registered travel agency for the travel services that were not provided, should complete the claim form.  In some instances, it is necessary for more than one person to complete a claim form as one person may have paid the deposit and another person may have paid the balance owing for the trip.

Are there any costs involved in filing a claim against the Compensation Fund?
There is no fee to file a claim against the Compensation Fund; however, TICO’s claim form includes an affidavit that requires an oath to be sworn or an affirmation to be made before a Commissioner of Oaths, Notary Public or a Lawyer.  Depending on who you get to complete your affidavit, you may be required to pay a fee for this service.  Should you not have access to someone who can provide this service for you, you may consider contacting your local City Hall to enquire whether they have a Commissioner of Oaths that may be available to complete your affidavit.  Alternatively, by appointment only, you may attend TICO’s office to have your affidavit commissioned free of charge.

 

Is there a deadline to file a claim with the Compensation Fund?
Section 60 of Ontario Regulation 26/05 states that "a customer or a registrant may make a claim to be reimbursed in writing to the Board of Directors within six months after the relevant registrant or end supplier (airline or cruise line) becomes bankrupt or insolvent or ceases to carry on business".  A claim to be reimbursed that is made after the end of the six month period is not valid. 

Effective July 1, 2010, claims filed in relation to trip completion must be filed within three months after the relevant TICO registered travel retailer or TICO registered travel wholesaler becomes bankrupt or insolvent or ceases to carry on business.   involving the reimbursement of reasonable expenses incurred (transportation, accommodation and meals) to complete a trip where the travel services have not been provided as the result of the closure of a TICO registered travel retailer or a TICO registered travel wholesaler.

The claim filing deadline date will be on the first page of the claim form.  If you are not able to obtain all the documentation required in order to substantiate your claim in a timely manner, TICO recommends that you submit your claim form and send the additional documentation when it is obtained to avoid late filing.

 

Is there a maximum payable?
Payments out of the Fund are limited to a maximum of $5,000 per person and to a total of $5 million per event. Default insurance or trip interruption insurance should be considered by passengers who require protection beyond the $5,000 maximum.

 

How long does it take to obtain a reimbursement from the Compensation Fund?
The length of time for a claim to be processed and presented to the Board of Directors can vary depending on whether TICO requires further information or documentation from the claimant or other parties.  TICO strives to have claims processed within 60 – 90 days from the date of receipt.

 

What happens next?
Once a claim is received, it is reviewed to ensure that contains all the required supporting documentation and information.  Should more information be required, TICO Claims Staff will contact the claimant to obtain any further information or documentation required to prove a claim.  Once a claim contains all the required documentation, the claim will be presented to the TICO Board of Directors for its consideration. The Board of Directors must ensure that each claim is eligible under Ontario Regulation 26/05.

 

If I’m not satisfied with the outcome of my claim, is there an 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 with respect to the ineligible amount.  To file such an appeal, you must mail or deliver a written request within 15 days of receipt of notice of the Board’s decision.    

 

Is there a cost to appeal a decision of the Board?
There is a $100.00 fee payable to the Minister of Finance that must accompany your notice of appeal.

 

What other provinces in Canada have similar Compensation Funds?
Both Quebec and British Columbia have their own Travel Compensation Funds.  The criteria to claim will vary based on the legislation in those provinces.  To obtain more information, please refer to the Links Page on TICO’s website.