4(1)A premium under a taxable insurance contract relating to travel risks falls within this paragraph if—
(a)the contract is arranged through a person falling within sub-paragraph (2) below, or
(b)the insurer under the contract is a person falling within that sub-paragraph,
unless the insurance is provided to the insured free of charge.
(2)A person falls within this sub-paragraph if—
(a)he is a tour operator or travel agent;
(b)he is connected with a tour operator or travel agent; or
(c)he pays—
(i)the whole or any part of the premium received under the contract, or
(ii)a fee connected with the arranging of the contract,
to a tour operator or travel agent or to a person who is connected with a tour operator or travel agent.
(3)Where a taxable insurance contract relating to travel risks is arranged through a person who is connected with a tour operator or travel agent, the premium does not fall within this paragraph by virtue only of sub-paragraph (2)(b) above except to the extent that the premium is attributable to cover for a risk which relates to services supplied by a tour operator or travel agent with whom that person is connected.
(4)Where the insurer under a taxable insurance contract relating to travel risks is connected with a tour operator or travel agent, the premium does not fall within this paragraph by virtue only of sub-paragraph (2)(b) above except to the extent that the premium is attributable to cover for a risk which relates to services supplied by a tour operator or travel agent with whom the insurer is connected.
(5)For the purposes of sub-paragraphs (3) and (4) above, a travel agent shall be treated as supplying any services whose provision he secures or arranges.
(6)For the purposes of this paragraph, the cases where insurance is provided to the insured free of charge are those cases where no charge (whether by way of premium or otherwise) is made—
(a)in respect of the taxable insurance contract, or
(b)at or about the time when the taxable insurance contract is made and in connection with that contract, in respect of any insurance-related service,
by any person falling within sub-paragraph (2) above to any person who is or becomes the insured (or one of the insured) under the contract or to any person who acts, otherwise than in the course of a business, for or on behalf of such a person.
(7)In this paragraph—
“tour operator” includes any person who carries on a business which consists of or includes the provision, or the securing of the provision, of—
(a)
services for the transport of travellers; or
(b)
accommodation for travellers;
“travel agent” includes any person who carries on a business which consists of or includes the making of arrangements, whether directly or indirectly, with a tour operator for the transport or accommodation of travellers;
“travel risks” means—
(a)
risks associated with, or related to, travel or intended travel; or
(b)
risks to which a person travelling may be exposed at any place at which he may be in the course of his travel.