KUWAIT CITY, July 23: In the wake of the great confusion experienced by the travel offices in Kuwait after the departure of a Jordanian insurance company from the travel market, and the absence of a substitute for insurance, the International Air Transport Association (IATA) has given about 300 of these offices a notice until the end of August to adjust the situation, or face closure, reports Al-Jarida daily.
The daily has learned from IATA sources that it had asked these offices for a financial guarantee of about 75 thousand dinars to continue issuing tickets, which is difficult for many office owners to abide by.
The sources mentioned that 60% of these offices are subject to closure due to their inability to pay the said guarantee, or to work with the alternative of contracting with an appropriate insurance company to work with them, as was the case previously.
The sources pointed out that the exit of the Jordanian insurance company from the Kuwaiti travel market over the past few days put these offices in a dilemma.
The sources explained that most of the small projects specialized in the field of travel are subject to closure at a higher rate than others because of their inability to work with the financial guarantee, or subject to the terms of the French Insurance Company, which is currently the only alternative to the offices after the departure of the Jordanian insurance company.