Plans to improve protection to holidaymakers if their tour company collapses have been outlined by the Civil Aviation Authority (CAA).

Most customers buying flights and holidays involving air travel are covered by the Air Travel Organisers' Licensing (ATOL) system.

But some holiday packages do not have integrated insurance cover, leaving holidaymakers either without full or any cover in the event of company failure.

The CAA has asked for views on the proposals by November 23. If the CAA then concludes it should proceed as proposed, it will make recommendations to the Department for Transport for a change in the law with a view to new regulations being in force by next April.

A spokeswoman said: "We want to ensure there's consistent protection for people who buy package holidays."