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The compensations were calculated for tourists, who experienced loss due to UAB Freshtravel insolvency

2015-07-20 , Updated 2015-07-21 00:00

State  Department of Tourism under the Ministry of Economy (hereinafter- SDT) turned to the insurance company ERGO Insurance SE Lithuanian branch (hereinafter- ERGO) on 20 July by demanding to pay insurance benefits for tourists, who experienced losses resulting from the insolvency of travel organizer UAB Freshtravel.

Business of insolvent UAB Freshtravel was insured by a total amount of 202.734 Euros: by 101.367 Euros in Compensa TU S.A. Vienna Insurance Group Lithuanian branch and by 101.367 Euros of insurance amount in insurance company ERGO.

Most of the amount of insurance money was used to help tourists of UAB Freshtravel who were in difficult situation, who during insolvency of the travel organizer were in foreign countries and were illegally detained in Egyptian hotels. For the return of these tourists the charter flights were organized. The rest of unused insurance amount is 34.976,20 Euros. It will be distributed proportionally to all the tourists that suffered damage. Insurance company ERGO will transfer the money to their bank accounts.

SDT has totally received 813 requests of tourists for the compensation of damage under 781 contracts. Requests of tourists were collected from 14 November, 2014 until 1 July, 2015. Requests had many inaccuracies, not all required data and documents were submitted. Taking into account each separate case, SDT specialists communicated with agents of travel sales and tourists on specification of submitted requests and documents. The procedure of collection of claims were particularly difficult because UAB Freshtravel did not submit the lists of tourists to SDT with all the data about travel Reservations, concluded contracts, amounts received from tourists, travel vouchers and etc.

In accordance with the legislation, SDT evaluated the total amount of losses that had all tourists. After evaluation of received request it became clear that the amount of losses of tourists is equal to 734.090,21 Euros. The percent rate for one tourist and compensation to him is equal to 4.96 percent. In the nearest future the SDT will inform all the tourists in writing about the size of loss compensations experienced by each of them.

After the audit of tourist claims it became clear that part of the tourists that bought vouchers for UAB Freshtravel organized travels from UAB Cherry Media LT were not registered, i.e. that tourists did not conclude tourism service contracts with UAB Freshtravel. These tourists that bought vouchers from UAB Cherry Media LT and did not registered it are considered to be creditors of UAB Cherry Media LT. Money of consumers, collected for travels of travel organizer, that are in the bank account of UAB Cherry Media LT are still arrested. According to the data available by SDT, UAB Cherry Media LT intends to apply to the court with the request to annul the arrest of money amount that should be directly returned to the tourists in order to return all travel voucher price paid by specified group of tourists.

Costs, experienced due to separate services, when only plane tickets were bought from UAB Freshtravel and trips were taken individually, are not compensated from insurance funds.  

Review of cost calculation and matching to primary documents submitted by tourists was made by specialists of audit company UAB Provisus.

Please note that actual consideration of the insurance benefit payment issue is not a competence of SDT, but insurance company.

All originals of documents received from tourists will soon be transferred to UAB Freshtravel bankruptcy administrator UAB Valdsita (Architektų str. 1C, Šiauliai City, Tel. No. (8 41) 500 900; (8 6) 866 4534), so the tourists do not have to additionally apply to bankruptcy administrator or submit additional documents.

On the 14 November, 2014 SDT have appealed to the General Prosecutor‘s Office with the request to investigate the legality of UAB Freshtravel activity, the investigation is currently being carried out.


Contact phones to inquire:

+370 706 64985
+370 706 64932
+370 706 64970



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