European Parliament backs new travel refund rules affecting insurers and intermediaries

The European Parliament has approved new rules designed to simplify passenger refunds and clarify the responsibilities of airlines and travel intermediaries when journeys are disrupted.

The regulation, adopted on 20 October by 652 votes to two, with eight abstentions, introduces standardised reimbursement and compensation forms for passengers travelling across the European Union (EU).

The forms will be available in all official EU languages through the European Commission’s website and will cover air, rail, bus, and maritime transport.

The reforms also clarify the obligations of airlines and intermediaries, including travel agents and online booking platforms, when passengers seek reimbursement for cancelled flights.

Under the agreed framework, passengers will be entitled to reimbursement of eligible costs, including intermediary booking fees. The standard deadline is seven days, extending to 14 days where an intermediary has paid the carrier from its own account.

The arrangements are intended to prevent passengers from being left without reimbursement when responsibility for processing a refund is divided between an airline and a booking platform.

Where an intermediary fails to reimburse a passenger within the required period, the airline may become responsible for making the payment directly.

Implications for travel insurers

The changes could have implications for travel insurance claims handling, particularly where passengers seek reimbursement for cancelled journeys or additional expenses arising from disruption.

Travel insurers generally assess the extent to which policyholders are entitled to recover costs from airlines, accommodation providers, or other suppliers before determining whether an insured loss remains.

Clearer reimbursement obligations could therefore help claims handlers establish which costs are recoverable from transport providers and which may fall within the scope of a travel insurance policy.

However, the reforms do not alter travel insurance coverage directly, and any effect on claims settlements will depend on policy wording, the circumstances of the disruption, and the passenger’s entitlement to reimbursement.

The legislation also strengthens protection for passengers with disabilities or reduced mobility, including provisions for accompanying passengers to travel without additional charges where assistance is necessary.

The measures form part of wider EU efforts to improve passenger rights and strengthen enforcement across transport networks.

Although the European Parliament has approved the regulation, the legislation must complete the remaining formal procedures before the new requirements take effect.

The vote builds on wider reforms to European passenger rights, which seek to clarify airline obligations and the division of responsibility for disruption-related costs.