25. — F39[(1) An organiser or a trader facilitating linked travel arrangements who is arranging security in the manner provided for by this section, shall have insurance under one or more than one appropriate policy with an insurance undertaking referred to in paragraph (a)(i) or (ii) of section 24(5) authorised to provide that policy of insurance in the State, under which the insurance undertaking agrees to indemnify travellers (who shall be insured persons under the policy) and refund them in the circumstances referred to in section 22 or 22A.

(2) An organiser or a trader facilitating linked travel arrangements, shall, if arranging security in the manner provided for by this section, ensure that it is a term of every contract with a traveller that the traveller acquires the benefit of a policy of a kind referred to in subsection (1) in the event of the insolvency of the organiser.]

(3) In this section “appropriate policy” means one which does not contain a condition which provides (in whatever terms) that no liability shall arise under the policy, or that any liability so arising shall cease—

(a) in the event of some specified thing being done or omitted to be done after the happening of the event giving rise to a claim under the policy,

(b) in the event of the failure of the policy holder to make payments to the insurer in connection with that policy or with other policies, or

(c) unless the policy holder keeps specified records or provides the insurer with information therefrom.

F40[(4) No term or condition of a policy of insurance arranged under this section shall provide for or permit the deduction of expenses or administrative fees or charges (however called or described) from the amount a traveller is entitled to receive and which shall be paid to a traveller under subsection (1).]