TICO Travel Compensation Fund 2

Question 1

Which of the following consumers would be eligible to make a claim to the Travel Compensation Fund (TCF)?

Accepted Answer

An Ontario resident who paid a TICO-registered travel agent for a package and the agent became insolvent before travel

Answer

A Quebec resident who booked directly on an unregistered online travel website and lost money

Answer

An Ontario resident who booked directly with an unregistered online travel website and lost money

Answer

A travel agent who lost their commission income because a supplier went bankrupt

Question 2

The Travel Compensation Fund (TCF) is funded primarily through:

Accepted Answer

Annual levies paid by all TICO-registered travel agents and wholesalers based on their sales volume

Answer

A direct grant from the Ontario government's general revenue fund

Answer

A federal consumer protection tax levied on all Canadian travel purchases

Answer

Voluntary contributions from travel industry associations

Question 3

The Travel Compensation Fund (TCF) covers losses arising from which specific event?

Accepted Answer

The financial insolvency of a TICO-registered travel agent or travel wholesaler

Answer

A travel supplier (e.g., airline or hotel) going bankrupt, even if the agent is solvent

Answer

Travel disruptions caused by natural disasters or political instability

Answer

Injuries or medical emergencies experienced during travel

Question 4

Before filing a claim with the Travel Compensation Fund, what must a consumer do first?

Accepted Answer

Attempt to obtain a refund through all other available means, including credit card chargebacks and travel insurance claims

Answer

File a formal lawsuit against the insolvent travel agency

Answer

Wait 12 months from the date of the insolvency before filing a claim

Answer

Obtain written confirmation from TICO that the registrant is insolvent

Question 5

A consumer paid a TICO-registered agency $8,000 for a family vacation package. The agency became insolvent. The consumer received $2,000 back through a credit card chargeback. How much can the consumer claim from the TCF?

Accepted Answer

Up to $6,000 (the unrecovered portion), subject to the TCF's maximum claim limit

Answer

The full $8,000, regardless of the chargeback already received

Answer

$8,000 minus any TCF administrative fee

Answer

Nothing — the consumer must wait 2 years after insolvency before filing a TCF claim

Question 6

What is the maximum amount the Travel Compensation Fund will pay to any single consumer claimant?

Accepted Answer

The TCF has a published maximum claim limit per consumer, which is set by TICO's board and can change over time

Answer

There is no maximum — the TCF will pay 100% of all proven losses

Answer

The maximum is $500 per transaction regardless of the amount lost

Answer

The maximum is equal to the registrant's trust account balance divided by the number of claimants