Travel trade asked to help devise new rules to stamp out false holiday sickness claims

Travel industry bosses and trade bodies are being asked to help the Government put together new rules designed to crack down on false holiday sickness claims.

They are asking the trade to submit evidence in the next four weeks to help give ministers a greater insight into the rise of false claims for gastric illnesses by British holidaymakers.

The findings will be used to help establish new regulations which the Government hopes to introduce early next year.

ABTA has launched its own campaign to educate British travellers on the legal implications of making a fraudulent claims after seeing a 500% increase from around 5,000 claims in 2013 to around 35,000 claims in 2016.

The association blames the ‘unscrupulous, aggressive and sometimes illegal’ practices of claims firms who have turned their focus to holidays after new legislation was introduced in 2012 to limit legal costs in other sectors, such as motor insurance, making cases like whiplash claims less profitable.

According to ABTA, the average value of a gastric illness claim is about £2,100 and the average cost of defending a claim is higher, at almost £3,800.

The Government’s press statement today also quoted an ABTA estimate of £240 million as the total cost to the industry in gastric illness claims in 2016.

Some media incorrectly reported that this was the cost to the industry from purely false sickness claims, but ABTA issued a statement stressing that this overall figure applies to the total cost of claims to the industry, not just false claims.

It also stressed that the impact doesn’t just affect Britiah companies but has a huge impact on hotels offering all-inclusive holidays, particularly in Spain and Portugal.

The Government said tour operators often decide to settle holiday sickness claims out of court, rather than challenge them because – due to the fact these spurious claims are arising abroad – legal costs are not controlled.

It says the trend is damaging Britain’s reputation overseas and could drive up holiday costs.

Justice Minister Dominic Raab said: "Bogus claims against tour operators risk driving up the price of summer holidays abroad for hard-working families who have earned a break. We’re taking action to deter these claims, and protect holiday-makers from being ripped off."

Ministers have put forward proposals which would mean tour operators would pay a prescribed sum depending on the value of the claim, making defence costs predictable and helping to deter bogus claims.

Jet2holidays CEO Steve Heapy said: "We welcome the Government’s commitment to crackdown on the fraudulent sickness claim culture, fuelled by touts and unscrupulous claims management companies.

"We’ve worked hard to warn our customers about the risks of bringing fraudulent claims, but it’s become clear the Government needs to step in, which is why this Call for Evidence is so important." 

Related News Stories: