Bankruptcy of the agency, composition with creditors (konkordato), liquidation and de facto closure are not the same event
A bankruptcy judgment issued by a court
Bankruptcy is different from a business merely appearing as “closed” in the trade registry or on its website. The opening of bankruptcy, claims against the estate, the registration and collection of ordinary bankruptcy claims and the acts of the competent bankruptcy office are governed by the Enforcement and Bankruptcy Law (İcra ve İflas Kanunu). The tourist should first investigate the identity of the company and its actual registry and court status.
Composition with creditors (konkordato) and payment difficulties
An application for composition with creditors (konkordato) or a provisional moratorium does not automatically mean bankruptcy. The nature of the claim, the effect of the moratorium on the contract, security, collateral and the available remedies are assessed separately. A company’s statement that “we cannot make payments” should not be confused with a court decision.
Cessation of operations and cancellation of the licence
Cancellation of the agency’s operating certificate, closure of its premises or a halt in tour operations may lead to different administrative and contractual consequences. The special insurance protection under Article 12 of Law No. 1618 should not be described as limited to cases in which a formal bankruptcy judgment has been issued; the failure to provide the promised service at all or properly for another reason is also examined under the policy and the statute.
Is compulsory package tour insurance present in every tourism sale?
The requirement of a package tour sold in Türkiye
Article 12 of Law No. 1618 expressly governs package tours sold in Türkiye. The mere fact that a hotel room, an individual plane ticket or a single transfer was sold does not in every case produce the package tour insurance outcome. Whether the services together have the character of a package is examined under Article 51 of Law No. 6502 and the Package Tour Contracts Regulation (Paket Tur Sözleşmeleri Yönetmeliği).
The package tour organiser and the intermediary
The organiser who assembles and sells the tour programme and a person who merely acts as an intermediary in the sale may bear different obligations under the contract and the Regulation. The titles shown on the sales contract, the invoice, the brochure and the policy should be compared with the actual trade registry records.
A foreign tour operator or a sale outside Türkiye
If the tour was sold entirely by a foreign operator outside the country, the limit of Article 12 of Law No. 1618 (“package tours sold in Türkiye”) becomes important. An EU/UK or other country’s insolvency protection scheme may exist; the scope of those systems is investigated separately under the law of the country concerned and on the basis of the operator’s actual registration. The existence of a hotel in Türkiye does not by itself automatically make the same insurance applicable to a foreign operator’s sale.
Scope of the insurance protection under Article 12 of Law No. 1618
Non-provision of the promised service and bankruptcy
The statute makes it compulsory to insure the liability that may arise from the services promised within a package tour not being provided, or not being provided as promised, for any reason including the bankruptcy of the agency. The insurer’s liability must be at least equal to the price of the package tour. This does not mean that every indirect loss claimed will be paid without any limit; the scope of the policy and the statutory conditions are examined separately.
The right to claim directly from the insurer
Article 12 of Law No. 1618 provides that the customer may claim a loss covered by the insurance directly from the insurance company. For this reason, when the agency closes, one should not wait only for payment from the company; whether an insurance policy and cover exist should be investigated.
The cover of the compulsory package tour insurance and the customer’s right of direct claim
Article 12/1-a of Law No. 1618 provides for insurance of the liability that may arise when the services promised in package tours sold in Türkiye are not provided at all or not provided properly for any reason, including the bankruptcy of the agency. The insurer’s liability must be at least equal to the price of the package tour, and the customer must be able to claim the loss covered by the insurance directly from the insurer. This statutory minimum cover does not mean that the insurer will pay every item of indirect loss without limit; the scope of the policy, the limit and causation are examined separately. The notification, under Article 12/1-b, of the optional accident/illness cover must not be confused with this compulsory performance guarantee.
Separating the agency’s operating security from the insurance policy
The security that a travel agency maintains under its administrative licence/operating certificate, the compulsory package tour insurance under Article 12 of Law No. 1618 and the tourist’s personal travel health or cancellation policy are legally different guarantees. It cannot be assumed that the administrative security is a general fund that directly pays every consumer claim. Which insured risk, which counterparty and which type of cover the claim rests on must be determined from the policy and the legislation.
It must not be confused with accident and illness insurance
The package tour performance liability insurance is different from the tourist’s health/travel policy. The separate obligation under Article 12/b of Law No. 1618 to inform the customer that they may take out insurance for accident/illness and return costs is also a different matter. It cannot be assumed that one policy automatically substitutes for the other.
If the agency stops operating in the middle of a package tour
Continuity of accommodation and return services
The closing of a room because payment has not been made at the hotel, or the cancellation of return tickets, may create an urgent need for accommodation and transport for the tourist. The priority is safe shelter, necessary health care and the organisation of transport. The necessary and reasonable expenses that the tourist pays out of their own pocket should be documented for proof.
Alternative services and the price difference
Article 12 of the Package Tour Contracts Regulation provides, where a significant obligation cannot be performed, for an equivalent alternative arrangement without additional cost and for the elimination of the difference. If the relevant participant’s conditions are met, a separate calculation can be made for withdrawal from the contract and for the consideration of the performance already rendered.
Consular or local authority support
For a tourist who has come from abroad, contact with the consulate, a travel document and coordination of the return may be of practical importance. However, the consulate does not undertake to pay every cost; legal relations with the insurer, the organiser and the carrier are pursued separately.
Where can the insurance policy be found?
Package tour documents and the brochure
The information under Articles 10 and 12 of Law No. 1618, the document showing the tour insurance, the organiser’s title and the contract should contain the policy details. The tourist’s archive of the contract, e-mails, SMS messages and invoices is reviewed.
Ministry and insurer records
Confirmation of the policy may be requested from the insurer; the records of the relevant Ministry and the competent institutional application channels may be searched. The absence of a policy number should not be treated as automatic proof that there is no cover; equally, it cannot be assumed that an unidentified insurer exists.
Policy limits and exclusions
The subject of the cover, the insurance period, which company is insured, the relationship between organiser and intermediary, and the distinction between accident/health risk and performance risk are checked. The statute’s minimum insurance obligation and the policy actually in force in the specific file are separate matters of proof.
What can be done if the insurance company rejects the loss?
Obtaining the reasons for rejection in writing
Each of the insurer’s grounds for rejection, such as “the policy does not cover this”, “the sale was made in a foreign country”, “the agency’s liability has not become final” or “the loss has not been proved”, is assessed with separate documents. The contract, the tour programme, the payment, the failure to provide the service and the alternative expenses are placed in the file.
Insurance law and the consumer dispute
The competent authority depends on the parties, the nature of the insurance contract, the consumer relationship and the structure of the claim. The options of the Insurance Arbitration Commission (Sigorta Tahkim Komisyonu) or court proceedings are examined separately according to the type of insurer and the preliminary application requirements legally sought. It should not be asserted that a single route of application is mandatory in every file.
Can a claim with the bankruptcy estate and an insurance claim be made together?
The same loss cannot be collected twice
The claim directed at the bankruptcy estate and the compensation sought from the insurer may be different liable parties or protection mechanisms. However, double recovery for the same loss is not possible; the insurer’s subrogation/recourse and set-off relationship must be examined.
Registration of the claim under Article 219 of the Enforcement and Bankruptcy Law (İİK) and supporting documents
In ordinary liquidation, the bankruptcy notice under Article 219 of the İİK invites creditors to register their claims and claims to recover property within one month from the date of the notice. The tourist should attach the package tour contract, the payment receipt, the tour cancellation, additional return costs and insurance correspondence to the claim registration. This period is not the same as the period for applying to the insurer or the general statute of limitations for a consumer dispute. Late notification may have different consequences depending on the state of the liquidation; verifying the date of the notice and the type of liquidation is mandatory.
Objection to the schedule of ranking (sıra cetveli) under Article 235 of the İİK is a separate step
If a claim has been rejected or placed in an incomplete rank in the schedule of ranking (sıra cetveli) prepared by the bankruptcy administration, the filing of the relevant action as a rule within fifteen days following the notice comes into question under Article 235 of the İİK. Special cases in which service of notice is taken as the starting point by law, and the type of application (objection to the substance of the claim / objection to its rank), are assessed separately. The one-month claim notification under Article 219 of the İİK and the period for objecting to the schedule of ranking under Article 235 cannot be used in place of each other. The authorities for application and the rights of other creditors are determined according to the type of dispute.
Time limits and procedure for the bankruptcy claim
The bankruptcy judgment, the notice, the schedule of ranking, the registration of the claim with the estate and the periods for objection are determined according to the specific notice and the provisions of the Enforcement and Bankruptcy Law in force. There is no single, unchanging “30-day claim action” rule that applies in every travel agency bankruptcy. A time limit should not be estimated before the court process of the business has been reviewed.
The decision of the 11th Civil Chamber of the Court of Cassation on bankruptcy during a tour and insurance
Court of Cassation (Yargıtay) 11th Civil Chamber, E.2016/926, K.2017/1660, 20.03.2017
In a dispute in which the organising company changed the tour programme and, after the participant was told during the journey that the company had gone bankrupt, the participant paid for a return ticket and additional accommodation, the court of first instance determined the limits of responsibility between the agency and the insurer on the basis of the policy provision and an assessment of fault; the 11th Civil Chamber of the Court of Cassation upheld the judgment. The decision does not mean that the agency and the insurer are liable for every loss without limit and in the same proportion; the cover and the reasoning in the specific policy are decisive. Anonymised full text: https://app.dejure.ai/dokuman/24adee0d-aac2-4732-be7e-4332be5da2a9
Practical significance
The compulsory return and additional accommodation costs that arise in the middle of a journey may not consist merely of the holiday price. When preparing the application to the insurer, the actual expenditure, the policy limit and the part that was not properly performed should be separated.
What changes if the tourist paid by credit card?
If a service paid for by card is not provided at all, the bank’s card-scheme-based chargeback procedure (harcama itirazı) may be applied. This method does not mean that every objection will certainly be refunded; the bank’s procedure, the transaction dates, the evidence and the card scheme rules are decisive. A bank objection does not automatically suspend or extinguish the rights against the insurer and the agency.
Which documents should be collected in a bankruptcy claim?
Keep the contract, the brochure, the policy, invoices, bank receipts, reservation confirmations, refusal letters from hotels and airlines, the agency’s announcement, the trade registry/bankruptcy notice, a schedule of services not received, documents for compulsory new expenses and all correspondence. The company’s operating certificate and full title are particularly important; consumers often do not know which legal entity owns which brand.
Applicable law and competent court for a foreign tourist
The country in which the tour was sold, where the services were performed, the consumer’s place of residence and the governing-law/jurisdiction clause in the contract are examined separately under the Law on Private International and Procedural Law (MÖHUK). The existence of a hotel operating in Türkiye is not a rule that would automatically resolve a foreign operator’s bankruptcy before the Turkish courts. In a cross-border collection strategy, the insurer, the bankruptcy estate and the alternative countries in which to seek redress are compared.
Related articles: Package Tour Not Performed or Not Properly Performed: Itinerary Changes, Refund of the Price and Compensation
Conclusion
When an agency goes bankrupt, the first question is not “has the company closed?” but which package tour, which country of sale, which responsible company and which insurance cover exist. Article 12 of Law No. 1618 creates a special and strong protection for package tours sold in Türkiye. The services not performed, the compulsory additional expenses, the insurance and the bankruptcy claim should be documented; the urgent need to return should not be delayed.
Frequently Asked Questions
If the agency goes bankrupt, can I claim the package tour price I paid from the insurance?
If the package tour was sold in Türkiye and the conditions of Article 12 of Law No. 1618 are met, a loss covered by the insurance may be claimed directly from the insurer.
The company’s website has gone offline; is that legally bankruptcy?
No. A bankruptcy judgment, composition with creditors (konkordato), liquidation and de facto closure may be separate legal situations.
Does the Turkish compulsory insurance apply to a package tour bought outside Türkiye?
Article 12 of Law No. 1618 sets the scope of “package tours sold in Türkiye”; protections in other countries must be investigated separately.
If I buy a return ticket myself in the middle of the tour, can I claim its cost?
If a reasonable, necessary expense connected with the event is proved with documents, it may be considered within compensation.
Does my own travel insurance automatically cover the agency’s bankruptcy?
No. The scope of the policy and the exclusions for bankruptcy/travel disruption are a separate matter.
Does a chargeback request to the bank give a certain result?
No. Card rules and evidence determine the conditions; it is important to file the objection in time.
Does applying to the bankruptcy estate prevent me from applying to the insurer?
Not in every case; the rights and the set-off relationship are examined separately, and the same loss cannot be collected twice.
What is the minimum amount of cover a package tour insurance must provide?
The statute does not provide a fixed sum; it provides for insurer liability at least equal to the price of the package tour.
Sources and legal bases
- Law No. 1618 on Travel Agencies and the Association of Travel Agencies (Seyahat Acentaları ve Seyahat Acentaları Birliği Kanunu), Articles 10 and 12; statement of the Ministry of Culture and Tourism of the Republic of Türkiye. yigm.ktb.gov.tr
- Law No. 6502, Article 51; Package Tour Contracts Regulation (Paket Tur Sözleşmeleri Yönetmeliği), Articles 10–13. teftis.ktb.gov.tr
- Law No. 2004 on Enforcement and Bankruptcy (İcra ve İflas Kanunu), the relevant provisions on bankruptcy, composition with creditors, registration of claims and the schedule of ranking.
- Law No. 5684 on Insurance (Sigortacılık Kanunu) and the special provisions applicable to the nature of the policy.
- Court of Cassation (Yargıtay) 11th Civil Chamber, E.2016/926, K.2017/1660, 20.03.2017, anonymised full text. app.dejure.ai
- Law No. 1618, Article 12. turofed.org.tr
- Law No. 2004 on Enforcement and Bankruptcy, Articles 219 and 235. mevzuat.gov.tr