Financial Cover

As part of the licensing requirements, it is necessary for Travel Agent Licence holders to provide RDG with a financial guarantee in the form of either a bankers bond or, after three years of satisfactory trading with RDG, membership into the Travel Agents Reserved Insurance Fund (TARIF).

Bonds
For new licence applications, the value of the bond needs to be equal to the sum of the two highest consecutive projected periods sales as declared by the applicant in the Travel Agent Licence application form. However, we do require a minimum bond level of £10,000.

Bonds from any UK bank or from a financial organisation authorised by RSP, can be accepted.

For existing agents, the value of the bond needs to be equal to the sum of the two highest consecutive periods of rail sales, plus a percentage for growth, generated under their RDG Travel Agent Licence in the previous 13 rail accounting periods.

Bonds are reviewed periodically on the basis of the agent's most recent 13 accounting periods and should there be a notable rise in an agent's revenue then we would request an increase in the level of the bond in order to ensure adequate cover is maintained at all times.
Please click here to download details of RSP approved draft bond wording.

If you find you need further information or advice, then please contact Lee Grainger at   lee.grainger@raildeliverygroup.com

Travel Agent Reserved Insurance Fund
The Travel Agent Reserved Insurance Fund (TARIF), is a cost effective alternative to bonding, and Travel Agent Licence holders can apply to become a member of the scheme after completing 3 years of satisfactory trading with RDG.

TARIF is an umbrella credit insurance policy paid for from a ‘reserve fund’ accumulated from an annual levy paid periodically by participating licenced Travel Agent Licence holders.

The reserve fund pays for the annual credit insurance policy premium, various excess elements within the policy and any annual losses, plus administrative costs.

Each TARIF member is required to pay the TARIF Scheme levy rate which applied at the time the Scheme started or the TARIF Scheme levy rate at the point of entry, whichever is the higher.

The TARIF member pays such a rate for the first 3 years of their participation in the Scheme or to the point at which the Scheme ceases to exist, whichever is the earlier. If during this period, the levy rate increases above the initial rate prevailing when the Scheme commenced, they are obliged to pay the higher rate.

After 3 years membership they revert to paying the levy that applied to participants after the first 3 years of the Scheme’s inception or the levy prevailing at that point in time, whichever is the higher.

If you find you need further information regarding the TARIF scheme, then please contact Lee Grainger at   lee.grainger@raildeliverygroup.com

Rail Delivery Group Travel Agents Team