{"id":991,"date":"2025-04-03T09:37:02","date_gmt":"2025-04-03T09:37:02","guid":{"rendered":"https:\/\/safetree.in\/blog\/?p=991"},"modified":"2026-02-06T12:33:55","modified_gmt":"2026-02-06T12:33:55","slug":"why-liability-insurances-are-vital-for-every-tour-operator","status":"publish","type":"post","link":"https:\/\/safetree.in\/blog\/why-liability-insurances-are-vital-for-every-tour-operator\/","title":{"rendered":"Case Study 04: Why Liability Insurances are vital for every Tour Operator"},"content":{"rendered":"<h2><span style=\"color: #000000;\">Case\u00a0Note:<\/span><\/h2>\n<h2><span style=\"color: #000000;\">A\u00a0leading\u00a0OTA\u00a0vs\u00a0Devraj\u00a0Beharnani\u00a0&amp;\u00a0Ors.\u00a0on 22\u00a0January,\u00a02024<\/span><\/h2>\n<p><!--more--><\/p>\n<p>SCC\u00a0Online\u00a0NCDRC\u00a0310<\/p>\n<h3><span style=\"color: #000000;\">Facts\u00a0of\u00a0the\u00a0Case<\/span><\/h3>\n<p>The complainant booked an international travel package with a leading online travel portal for himself and his grandchildren, costing INR 450,000. The package included flights, accommodations, meals, sightseeing, and travel insurance.<\/p>\n<p>The <a href=\"https:\/\/safetree.in\/tour-operator-liability-insurance\">tour operator<\/a> failed to provide key travel documents (itinerary, tickets, hotel vouchers, and insurance) until the night before departure, causing severe inconvenience.<\/p>\n<p>The complainant faced multiple issues during the trip \u2013<\/p>\n<ul>\n<li style=\"color: #000000;\">Delayed flights and last-minute route changes<\/li>\n<li style=\"color: #000000;\">Uninformed hotel switches, leading to unexpected charges<\/li>\n<li style=\"color: #000000;\">Cancelled sightseeing tours<\/li>\n<li style=\"color: #000000;\">Lack of proper accommodation arrangements, resulting in the complainant personally paying for new bookings<\/li>\n<li style=\"color: #000000;\">Travel insurance was never provided, despite prior assurances<\/li>\n<\/ul>\n<p>The complainant, a senior citizen, suffered health complications during the trip due to the stress caused by the tour operator\u2019s mismanagement.<\/p>\n<h3><span style=\"color: #000000;\">Legal\u00a0Issues<\/span><\/h3>\n<p><span style=\"color: #000000;\"><strong>The Complainant sought \u2013<\/strong><\/span><\/p>\n<ul>\n<li style=\"color: #000000;\">INR 450,000 refund for the package<\/li>\n<li style=\"color: #000000;\">INR 50,00,000 compensation for mental and physical suffering<\/li>\n<li style=\"color: #000000;\">INR 55,000 litigation costs<\/li>\n<li style=\"color: #000000;\">INR\u00a011,000\u00a0notice\u00a0fees<\/li>\n<\/ul>\n<p><strong>The tour operator argued &#8211;<\/strong><\/p>\n<ul>\n<li style=\"color: #000000;\">They\u00a0acted\u00a0only\u00a0as\u00a0a\u00a0facilitator\u00a0and\u00a0were\u00a0not\u00a0liable\u00a0for\u00a0airline\u00a0delays\u00a0or\u00a0hotel\u00a0unavailability.<\/li>\n<li style=\"color: #000000;\">Some refunds were processed, and hotel changes were made due to availability issues.<\/li>\n<li style=\"color: #000000;\">The State Commission lacked territorial jurisdiction, as the tour operator claimed the cause of action didn\u2019t arise in Jaipur.<\/li>\n<\/ul>\n<p><strong>Judgement<\/strong><\/p>\n<p style=\"text-align: left;\"><strong>The State Commission ruled in favour of the complainant, awarding INR 200,000 compensation for deficiency in service and INR 21,000 litigation costs.<\/strong><\/p>\n<p><strong>The\u00a0NCDRC\u00a0upheld\u00a0the\u00a0State\u00a0Commission\u2019s\u00a0decision,\u00a0holding\u00a0that\u00a0&#8211;<\/strong><\/p>\n<ul>\n<li style=\"color: #000000;\">The tour operator\u2019s failure to provide complete travel details on time, sudden hotel changes, and lack of insurance amounted to deficiency in service under the Consumer Protection Act.<\/li>\n<li style=\"color: #000000;\">The State Commission had territorial jurisdiction since the complainant booked the package from Jaipur, where the tour operator had an office.<\/li>\n<li style=\"color: #000000;\">Considering\u00a0the\u00a0complainant\u2019s\u00a0age\u00a0(75+)\u00a0and\u00a0the\u00a0distress\u00a0caused,\u00a0the\u00a0compensation\u00a0was deemed fair and justified.<\/li>\n<\/ul>\n<h3>Conclusion<\/h3>\n<p>The appeal was dismissed, and the tour operator was held accountable for its service failures, reinforcing the duty of travel companies to provide smooth, hassle-free travel experiences as promised to consumers.<\/p>\n<p>The tour operator could have mitigated its financial and legal risks with business insurance tailored for travel agencies, which protects against customer claims and service failures. Professional Liability Insurance (Errors &amp; Omissions Insurance) would have covered legal costs and settlements for negligence or mismanagement, reducing liability for the deficiency in service claim.<\/p>\n<p>Please contact the <a href=\"https:\/\/safetree.in\/\">SafeTree<\/a> team for how we could support you in providing financial protection against such legal claims.<\/p>\n<h3>Contact<\/h3>\n<p><strong>Mr Akarshit Sonkar &#8211; M:<\/strong>\u00a0+91\u00a09582743333\u00a0or\u00a0<strong>E:<\/strong>\u00a0<a style=\"color: #000000;\" href=\"mailto:akarshit@safetree.in\">akarshit@safetree.in<\/a><\/p>\n<p><strong>Ms Gunjan Hans &#8211; M:<\/strong>\u00a0+91\u00a09899044229\u00a0or\u00a0<strong>E:<\/strong>\u00a0<a style=\"color: #000000;\" href=\"mailto:gunjan.hans@safetree.in\">gunjan.hans@safetree.in<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Case\u00a0Note: A\u00a0leading\u00a0OTA\u00a0vs\u00a0Devraj\u00a0Beharnani\u00a0&amp;\u00a0Ors.\u00a0on 22\u00a0January,\u00a02024<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[119],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.1 - 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