Hainan issues 1st insurance policy to improve travel service

By Chen Shumin / HICN / Updated: 17:38,20-October-2021

Recently, the Hainan Branch of Sunshine Property Insurance Company Limited issued the first travel service quality deposit insurance policy to the Hainan Kaisheng Travel Agency. This was the first insurance policy issued to a national travel agency to replace the travel service quality deposit.

With this insurance policy, travel agencies only need to pay for part of the cost of insurance, and the insurance company will share the risk of quality assurance performance so as to help improve the service quality of travel agencies.

The Ministry of Culture and Tourism approved Hainan Province's use of insurance to pay for travel service quality deposits this July, and the pilot program was officially launched on October 8. As of now, a total of 7 selected insurance companies have received applications from 89 travel agencies and have issued insurance policies to 17 agencies.

According to the Provincial Department of Culture, Radio, Film, Television, Publication and Sports, travel agencies in Hainan would have had to pay the full amount of the travel service quality deposit, an amount that could total over 190 million yuan (about 30 million dollars) based on current tourism regulations. With the implementation of the above measure, travel agencies only need to pay about 3.8 million yuan (about 0.6 million dollars) for insurance each year. Thus, a large amount of stock capital will be injected into the further development of Hainan’s tourism industry.

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