Further steps to tackle the holiday sickness claims culture - CPA

17/10/2017

Further steps to tackle the holiday sickness claims culture (UK)

A call for evidence to help identify the full extent of the rise in false insurance claims brought by British holidaymakers for food poisoning has been launched by the Ministry of Justice to help tackle a culture that is costing the travel industry millions, threatening to increase costs for honest holidaymakers and trashing Britain’s reputation abroad.

Claims, partly fuelled by touts operating in European resorts, are estimated by travel industry experts to have increased by as much as 500% since 2013. There has been no similar increase in other European countries.

‘Personal injury claims arising from package holidays: Call for evidence’ was launched on the day a Merseyside couple (Paul Roberts and Deborah Briton) respectively received 15 and 9 months prison sentences at Liverpool Crown Court for making fake claims relating to holidays in Majorca in 2015 and 2016.

Currently, tour operators often settle holiday sickness claims out of court because the legal costs – which are uncontrolled because the claims arise abroad – are out of proportion to the damages claimed.

Recent government proposals, which aim to reduce cash incentives by requiring tour operators to pay a prescribed sum depending on the value of the claim, are being considered by the committee responsible for setting rules on legal costs. The aim is to bring the new requirement into force early in 2018.