Zurich, the travel group’s German insurer, has a liability capped at €110 million, but has already registered claims worth €250 million, while estimates of total claims range between €300 million and €500 million. “Damages that are not compensated by other parties will be settled by the federal government,” it said in a statement in response to a report from ARD, the broadcaster.
Thomas Cook was one of the world’s largest holiday businesses, with 21,000 employees in 16 countries, including 9,000 in Britain, and 22 million customers a year. At the time of its failure in September, it had a balance sheet deficit of more than £3 billion, including £1.9 billion of debt.
According to ARD, legal opinion commissioned by Zurich has concluded that the state is liable as a result of the inadequate implementation by the federal government of a 2015 EU directive designed to ensure that customers recoup their money in the event of a tour operator becoming insolvent.
