Thursday, 25 May 2017

Sickness fraud could spark 15% hike in holiday prices

Sickness fraud claims are now out of control, with claims rising 700% 

Rock Insurance Group says package holidays could rise 15% because of sickness fraud.

Sickness fraud is where holidaymakers make a fake sickness claim, frequently encouraged by claims farmers, off their tour operator or hotel.

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Tour operators and hoteliers are covered by insurance for these types of sickness fraud claims - but the cost of rising premiums they face could now be passed onto holidaymakers. Sickness fraud typically involves holiday tricksters claiming they have eaten dodgy food and then have suffered a sustained bout of vomiting and diarrhoea. 

Rock sales director Phil Carr told TTG the sickness fraud surge had cost the industry £40m in claims in the last 18 months. He warned of a 15% price hike due to sickness fraud. 

“The issue with such fraudulent sickness claims, is that they are very difficult to prove. Most hoteliers and insurance providers will typically make a payment if the customer has received medical advice and has a valid prescription. However, the true cost of these medical claims can vary significantly and the sheer scale of claims will undoubtedly have an adverse impact on claim inflation moving forward,” he said.

Ealrier this month Spanish lawyers warn over explosion in holiday insurance fraud claims.

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