Collective Commentary about the New Package Travel Directive

CROATIA | TATJANA JOSIPOVIĆ 723 a request is subject to statutes of limitation prescribed for a contractual obligation 113 . As a rule, a general limitation period of 5 years applies 114 . The protection of travellers in the cases of lack of conformity is enhanced in Croatian law by a provision laying down that an organiser is bound to have insurance against liability for damage 115 . Such an obligation on the part of an organiser also existed under the provisions of the Obligations Act implementing the old PTD. An organiser is obliged to conclude a contract of insurance against liability for damage with an insurance company for any damages sustained by the traveller by not fulfilling, partly fulfilling or irregularly fulfilling the obligations ensuing from a package travel contract. Organisers are obliged to specify in the travel package contract all the data on the insurance against liability for damage, on the insured risks, the insurer, as well as all other data that are necessary to activate insurance and to exercise the right to a compensation for damage. The violation of an obligation to conclude a contract on insurance against liability for damage and an obligation to inform travellers about the contract of insurance is considered as misdemeanour for which a fine is prescribed by law 116 . However, the TSA does not expressly prescribe how to establish in the contract the level of the insured amount that the insurer is bound to pay to the traveller who has sustained a damage. If the insured amount is smaller than the sustained damage, the traveller is entitled to demand from the organiser a compensation for a part of the damage not paid by the insurer. 3.7. Insolvency protection Insolvency protection within the framework of a package travel contract is regulated in Croatian law in such a way that organisers are bound to secure every package against insolvency with an insurance company or a bank in the Republic of Croatia or any other state that is a party to the European Economic Area 117 . The security can be in the form of an insurance policy or a bank guaranty. It must be security by which an organiser makes it possible for a traveller to directly exercise his or her right to receive the payment or to activate security from an insurance company or a bank. Therefore, a traveller must be informed via a travel package contract about all relevant data necessary for the activation of 113 Art. 230, para. 3 OA. 114 Art. 225 OA. 115 Art. 53 TSA. 116 Art. 107, para. 1, points 18,19 TSA. 117 Art. 50, para. 1 TSA.