Collective Commentary about the New Package Travel Directive

892 COLLECTIVE COMMENTARY ABOUT THE NEW PACKAGE TRAVEL DIRECTIVE 6.2. Article 14 – Price Reduction and Compensation for Damages 6.2.1. Article 14(4) – Limitation of compensation for damages other than for personal injury or damage caused intentionally or with negligence The fourth paragraph of Article 5(2) of the 1990 Directive afforded Member States the possibility of permitting organisers to limit, under contract, the compensation payable in respect of damages arising from the non- -performance or improper performance of the services in the package, other than damage arising from personal injury, provided the limitation was not unreasonable. Section 20(3) of the 1995 Act provided that the level of compensation payable to the consumer, save in cases of death or personal injury or where the damage was caused to the consumer by the wilful misconduct or gross negligence of the organiser, could be limited under the package contract. Section 20(4) of the 1995 Act, further stipulated that where compensation limits are a term of the contract, liability may not be limited to less than: “(a) In the case of an adult, an amount equal to double the inclusive price of the package to the adult concerned, (b) In the case of a minor, an amount equal to the inclusive price of the package to the minor concerned .”. Article 14(4) of the Directive permits organisers to fix the level at which compensation may be limited, to three times the total price of the package, in circumstances other than where an international convention binding the European Union, would limit the extent of or the conditions under which compensation is paid by the supplier of the travel service, which is part of the package, or in the case where a Member State limits the compensation to be paid by an organiser according to an international convention not binding the European Union. However, this limitation does not apply to personal injury or damage caused intentionally or with negligence. Section 20(5) of the 1995 Act (as amended) permits organisers to limit, in their package contracts, the level of compensation payable for such claims to not less than three times the total price of the package. As stated above, Article 14(4) of the Directive permits organisers to limit the level of compensation to be paid by the organiser in accordance with international conventions binding the European Union. Section 20(4) of the 1995 Act (as amended) provides, “ where the relevant international conventions limit the extent of or the conditions under which compensation shall be paid by a travel service provider carrying out a travel service