A Czech tourist whose ruined holiday was not refunded by the bankrupt travel agency’s insurance company has demanded compensation from the state. This is the first case of its kind in the Czech Republic. The insurer of Parkam Holidays which went bankrupt last summer refused to refund clients in full for holidays that fell through arguing that the company’s insurance was low. Something similar happened to the clients of BG Travel which also went bankrupt. The Czech tourist who has set a precedent by demanding that the state refund the money is citing poor legislation which sets a low basic insurance limit for travel companies.
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