SINGAPORE - 53 customers of a spa operator which closed down will be able to get a refund on the unused portion of their packages.

Body Kneads closed on June 30 due to financial difficulties, The Straits Times reported.

The total amount to be refunded will add up to $12,800. The refunds range from 50 cents to $1,412, and will be coordinated by AVA Insurance Brokers.

These customers are the first to benefit from an industry insurance programme known as the Spa Protection Scheme, introduced by the Consumers Association of Singapore (Case) in October last year.

It requires spas that collect payment in advance to have an insurance plan that will pay out if their businesses close. Companies that do not join will not be accredited by Case.

11 customers who have already contacted the insurance company for their refunds will be issued cheques by next week. The rest will be contacted from today onwards.

221 spa and wellness outlets have been awarded CaseTrust certificates, the association's accreditation arm, the Straits Times reported. Consumers can refer to the CaseTrust website for a full list.

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