The government is rushing to introduce fixed recoverable costs for package holiday sickness claims before the summer season starts.
A Ministry of Justice announcement confirmed this week that the costs reforms would come into effect ‘in the coming weeks’. They follow concerns that legal costs in these claims can spiral out of proportion to the damages claimed, leading tour operators to settle rather than challenge the claim, which in turn has led to an upsurge. The Association of British Travel Agents has reported a 500% rise in volume of claims from about 5,000 in 2013 to about 35,000 in 2016, with unscrupulous claims management companies egging holidaymakers on and touts operating in some European resorts.
Justice Minister Rory Stewart said: ‘Claiming compensation for being sick on holiday, when you haven’t been, is fraud.
‘This damages the travel industry and risks driving up costs for holidaymakers. This behaviour also tarnishes the reputation of British people abroad. That is why we are introducing measures to crack down on those who engage in this dishonest practice.’
The reforms, drawn up by the Civil Procedure Rule Committee, bring package holiday claims within the fixed recoverable costs regime.
In September last year, Lancashire-based Allsure Ltd had its licence revoked by the Claims Management Regulator for pressuring people into making holiday sickness claims. It was found to have encouraged people to fabricate or embellish gastric illness symptoms and coached consumers in providing the answers needed to meet the criteria for a claim.
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