We need a cure for bogus sickness claims
Bogus whiplash claims adding sizeable sums to all of our car insurance policies have come to the fore in the press over the years, and thankfully a clampdown on claims management companies (CMCs) and a capping of the legal fees they can charge have curtailed it.
However, a legal loophole means overseas cases are excluded from this “fixed-cost regime”, meaning these CMCs have been targeting package holidays – particularly all-inclusives – with holiday sickness claims.
Data from Abta members has shown a dramatic rise in the number of gastric illness claims made since 2013, while sickness levels reported in-resort have remained stable. Gastric illness claims now represent 9 in 10 personal injury complaints received by members, a figure that stood at around 60% in 2013.
The legal costs associated with these cases, where evidence is scarce, means it is easier to settle claims; this in turn means bills totalling millions of pounds for tour operators.