The travel trade association ABTA has pointed to a YouGov survey of British adults suggesting that almost one in five British adults (19pc) have been contacted about making a compensation claim for holiday sickness.
The most common way people said they were approached was over the phone (14pc); next came text (7pc) and email (7pc). Some people also reported being contacted on social media (3pc) and approached in person (2pc) including in airports or while on holiday. ABTA is running a ‘Stop Sickness Scams’ campaign which reports that false claims are costing the travel industry tens of millions of pounds. ABTA is calling for the urgent closure of a loophole in the law, which enables claims management companies and legal firms to make more money in fees from sickness claims abroad, than they’re able to from personal injuries in the UK.
ABTA says that some claims management companies are contacting people out of the blue, encouraging them to make a false claim and often misleadingly saying there is a pot of money waiting to be claimed – but aren’t telling them the risks. As the trade body says, making a false compensation claim for holiday sickness is an act of fraud. However, many people are unaware of the seriousness of the penalty.
The research found seven in ten people don’t know that making a false claim for holiday sickness could result in a prison sentence in the UK or abroad. Near two in five (38pc) think people could receive a fine in the UK or abroad.
ABTA points out that in October 2017 a couple from Merseyside received a prison sentence after being found guilty of making a fraudulent sickness claim. The trade body reports that since 2013, there has been a 500pc rise in the number of compensation claims received by travel companies for holiday sickness – yet the number of sickness reports to hotels in resorts has remained the same. The problem is only associated with UK holidaymakers – travel firms in other countries have not seen an increase.
ABTA wants the Financial Guidance and Claims Bill – due to reach the House of Commons early in 2018 – to include a ban on cold calling for personal injury claims by claims management companies.
Mark Tanzer, ABTA’s Chief Executive said: “Unscrupulous claims management companies are encouraging people to make a false sickness claim which could land them with a large fine or even a prison sentence. False claims don’t just make UK holidaymakers vulnerable to serious penalties – they’re also costing travel companies and hotel owners tens millions of pounds and tarnishing the reputation of the British abroad. Closing the loophole in the law in time for the 2018 holiday season will make a big difference in tackling fraudulent sickness claims.”
