S.L. 409.19 Art. 16Effectiveness and scope of insolvency protection. S.L. 409.18

(1) Organisers are to provide security for the refund of all payments made by or on behalf of the travellers insofar as the relevant services are not performed as a consequence of the organiser's insolvency. If the carriage of passengers is included in the package travel contract, organisers shall also provide security for the travellers' repatriation. Continuation of the package may be offered:

Provided that organisers not established in Malta which sell or offer for sale packages in Malta, or which by any means direct such activities to Malta, shall be obliged to provide the security in accordance with the laws of Malta:

Provided further that organisers, who are subject to the provisions of the Package Travel Insolvency Fund Regulations, shall provide the security as established in the said regulations.

(2) The security provided by organisers referred to in sub-regulation (1) shall be effective and shall cover reasonably foreseeable costs. It shall cover the amounts of payments made by or on behalf of travellers in respect of packages, taking into account the length of the period between down payments and final payments and the completion of the packages, as well as the estimated cost for repatriations in the event of the organiser's insolvency.

(3) An organiser's insolvency protection shall benefit travellers regardless of their place of residence, the place of departure or where the package is sold and irrespective of the Member State where the entity in charge of the insolvency protection is located.

(4) When the performance of the package is affected by the organiser's insolvency, the security shall be available free of charge to ensure repatriations and, if necessary, the financing of accommodation prior to the repatriation.

(5) For travel services that have not been performed, refunds shall be provided without undue delay after the traveller's request.