The Government has today announced plans to crack down on fraudulent holiday sickness claims which is said to include possible changes to current cost rules.
The move follows campaigning from the UK travel industry against a rise in fraudulent holiday sickness claims and calls for Government intervention in a current landscape which, they say, allows for firms to profit from bogus claims.
Figures put forward by members of the travel industry show an upsurge in UK based claims of 500% since 2013; a trend not shared by our European neighbours. Evidence, they say, of the sheer scale of fraudulent travel claims in this country.
With many of these cases being settled out of court, costs to the industry are being driven up and the fear is that the pinch will, ultimately, be felt by the average law-abiding holidaymaker.
Alongside Ministers’ comments that they want to reduce cash incentives for bringing claims against tour operators, the Civil Procedure Rule Committee has now been asked to review the rules governing the costs of these claims.
Whilst we have a system of fixed recoverable costs for most types of personal injury claims, foreign holiday claims are not currently caught by this if the incident happened abroad; a loophole that many say is being exploited.
Proposed changes include extending fixed recoverable costs in an effort to provide predictability and certainty in an area where costs, all too often, spiral disproportionately out of control.
The Government has called upon evidence from the travel industry as it seeks to gather data before informing as to the further action to be taken.