DIP - Default Insurance Protection !

[Travel Agent]

Well done IAAI.

Timely intervention, as in the case of 20lac BG.

Please ensure, small and medium Travel Agents are protected and do not fall prey to the Financial Pressures of sharks.

Rgds

A4A

	IATA AGENTS ASSOCIATION OF INDIA Central Secretariat IAAI Bhavan, 39/4012- K & L, Karimpatta Road, Pallimukku, Cochin-682 016, INDIA Tel : +91 484 4022205 Email : c...@iaai.in, h...@iaai.in | www.iaai.in     IAAI/732-15/PST/DIP/CIR 28th April 2015 To: All IATA Accredited Agents in India Dear Everyone, Sub: Default Insurance Protection ( DIP ) program Tremors are also being felt in the Indian Travel Industry as July 2015 approaches when Travel Agents will be required to furnish Financial guarantees. With Insurance Guarantees routed through IATA BSP where the premiums are hovering at 1.75% + S.T and with APJC Representatives not making any attempts to have such premiums reduced, the ordinary Travel Agents will soon be facing turbulent times.   They will be required to pay huge cash deposits and collateral securities for Bank Guarantees that will bleed their financial resources and eventually force many of the Travel Agents to close down their businesses. Foreseeing this eventuality, IAAI had initiated steps to introduce the Default Insurance Protection (DIP) program, an internationally accepted method of airline financial protection, for the Indian Travel Fraternity which could relieve Travel Agents from the burden of cash/collateral deposit or advance insurance premiums and provide flexibility for resource-based optimization of business. Agents would have to make payments based only on sales revenue or the price per ticket sold. There is no advance payment, no advance premiums or fixed deposits required for this scheme. Ordinary Travel Agents will have the facility and flexibility to optimize business according to the market conditions. We are working consciously to roll out this program by 1st July 2015, subject to IATA approval. Tacit approval for the DIP program has been given to IAAI by Jet Airways, Emirates, Singapore Airlines and Etihad. However, there are many formalities to be undergone and the lack of support and approval from APJC-India may even veto the entire process. Hence, for the greater good of the Fraternity and for the survival of the ordinary Travel Agents, we, at IAAI, had approached the Delhi Court to stop all activities of the present APJC and direct the re-constitution of APJC-India under the guidelines given by the Passenger Agency Conference in January 2014 under Appendix F. We request your support and shall keep you posted on the developments. Regards, Biji Eapen                 D.L. Jekannathan                   S. Saldanha National President     General Secretary                   National Treasurer