HAIKOU / China /, October 24. / TASS /. The Hainan branch of Sunshine Property and Casualty Insurance Company Limited issued the first deposit insurance policy to Hainan Kaisheng travel agency to ensure the quality of services.
This is the first insurance policy issued to a national travel agency to replace the tourism service quality bond previously paid by the agencies, HICN news agency reported.
Under this insurance scheme, travel agencies can now only pay part of the cost of insurance. The remaining costs will be borne by the insurance company, which will share the risks of quality assurance in order to improve the quality of customer service for travel agencies.
The program, initiated by the Ministry of Culture and Tourism of the People’s Republic of China, was approved in Hainan in July this year and was launched in pilot mode on October 8. It provides insurance policies for deposits allocated by travel agencies to ensure the quality of tourist services.
So far, seven insurance companies have received policy enforcement requests from 89 travel agencies, 17 of which have already received the appropriate insurance package.
Under the current regulations, the total volume of the bond for quality assurance of travel services for operating Hainan travel agencies exceeds 190 million yuan (about $ 30 million). New insurance policies will allow agencies to pay only about 3.8 million yuan (about $ 600,000) annually. Thus, more social capital will be invested in the future development of tourism in the southern province of China.