HOLIDAYMAKERS will receive compensation of up to $100,000 if they are involved in accidents abroad, according to a proposal from the Hong Kong Travel Industry Council. The council's 1,235 agents are considering buying public liability insurance free for their clients. The move was prompted by the Christmas Day bus crash in Thailand which left two Hong Kong travellers dead and 21 injured. Most of the victims were uninsured. Last year, 12 local people were killed and 103 injured in 10 foreign accidents, most of them in mainland China. Under the new plan, the family of any traveller killed on a foreign tour will receive $100,000 plus $50,000 for funeral expenses. Any traveller who is hurt may also receive $100,000 depending on how serious the injuries are. A further subsidy of up to $30,000 will be paid to help families fly out to injured relatives. And the package will also cover the first $50,000 of the injured traveller's medical and hospital fees. Rebates may also be paid on the price of the holiday. Council deputy chairman Simon Hau Suk-kei said most firms would be charged just $10 per client to take part in the scheme. But the cost would not be reflected in the price of tours. Ten dollars can buy a considerable amount of insurance since between 700,000 and a million travellers leave Hong Kong each year, he said. 'It is estimated that the scheme will be very cheap to agencies.' The industry is studying proposals from about nine insurance companies and agents are holding talks on the plan. The Legislative Council's trade and industry panel will also discuss the issue tomorrow. It is not yet known whether the scheme will be enforced via legislation or through guidelines within the council. But a stamp issued by the council on travellers' receipts will ensure compensation. They will also receive information about insurance coverage. The scheme will cover all accidents that endanger the safety of travellers - including bus and air crashes - whether or not they occurred during group activities. However, economic losses due to robbery and theft will not be covered. Mr Hau hoped the new scheme would be launched before the summer travel season. He stressed the scheme aimed only to provide basic protection for travellers. 'If they want a better safeguard, they should buy their own insurance package,' he said. Legislator Howard Young welcomed the plan: 'This is a sound package, insurance is the only way to ease the pain if an accident happens.' But he said travel agents should continue to encourage clients to buy extra insurance. Mr Young, who represents the tourism functional constituency, added that the industry should also extend the existing Travel Industry Compensation Fund to compensate customers for delays and cancellations.