There is an ‘epidemic’ of insurance fraud – and for once, we’re not talking about car insurance claims.
Insurance law firm BLM commissioned YouGov to carry out a survey of 2,000 British consumers about their attitude to sickness claims following a rise in travel-related claims. It discovered that 46% believe it is acceptable to claim for food poisoning even if the illness was not caused by the hotel.
BLM suggests that there has been a surge in compensation claims for gastric illnesses over the last year
“It is not exaggerating to call this situation an epidemic,” said Sarah Hill, partner and head of fraud at BLM, as quoted by
Travel Mole.
“Claims management companies have identified this as fertile ground and there is a deep pool of potential claimants up for grabs.
“There needs to be some level of consumer education, as almost half of those surveyed think this practice is acceptable. In reality, it is against the law and is pushing up holiday prices.”
One of the reasons for the rise in claims, BLM suggests, is that claims companies are actively looking for targets – some even using social media to find people who could potentially make a claim and then approaching them abroad or via phone calls.
The survey found that 5% have received unsolicited calls about making claims; with 5% also approached to make claims while on holiday.
With payouts ranging from £500-£2,000 it’s easy to see the attraction for making money, leading Hill to state that “the industry needs to come together with government to develop a solution to this issue. It needs addressing in the same way whiplash claims were, with regulation that drives rogue CMCs out of the market. If left unchecked, this could threaten the future of the travel industry.”
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