Travel illness scams are ‘new bogus whiplash claims’

Industry warns holiday prices could go up as food poisoning legal cases rise 500pc in four years

PACKAGE holiday prices could rise because of a surge in fraudulent food poisoning claims against all-inclusive resorts, according to a trade body.

Travel sickness fraud has become the “new bogus whiplash claim” and the surge in fake cases could lead to holidaymakers being banned from some resorts, experts have warned.

Over the past four years, since a toughening up against whiplash claims by the Government, firms handling food poisoning claims have sprung up in popular destinations.

According to the Association of British Travel Agents (Abta), claims representatives are touting for business on the streets outside hotels. Most cases involve all-inclusive resorts as claimants can say they only ate at their hotel in an attempt to pinpoint the cause of their supposed food poisoning.

Since 2013, claims through firms have increased 500 per cent with tens of thousands of claims lodged, yet the number of food poisoning cases reported directly to hotels remained stable. The average claim is for around £2,000 and as there is no limit on the fees claims firms can take from payouts, a typical cut is up to 40 per cent.

Abta warned that British travellers risked being banned from resorts and that if hotels are forced to pay out compensation worth thousands of pounds they could raise prices to make up for money lost through fake claims.

Chris Mottershead, UK managing director at holiday firm Thomas Cook, said: “If left unchecked, the illegal activities of a minority will lead to higher prices and less choice for all British holidaymakers.”

Until recently, fake whiplash claims were costing the UK insurance industry around £1billion a year. After it discovered some whiplash firms were taking fees of £700 per case in 2014, the Ministry of Justice (MOJ) capped their fees from payouts at £180.

Abta is calling on the Government to take action to discourage the new trend. Mark Tanzer, the chief executive of Abta, said: “The legal loophole that is allowing firms to unduly profit from these claims must be closed. This would allow people with genuine claims access to justice but make this area less attractive to claims firms.

“Holidaymakers need to know that whatever a claims firm might say, fake claims are fraud.”

Prof Jaime Campaner Muñoz, the solicitor acting on behalf of the Federation of Majorcan Hotels, said: “We will be seeking convictions against anyone who is involved in these fraudulent claims.” Emy Anagnostopoulou, of the Greek National Tourism Organisation, said it supported Abta’s efforts.

An MOJ spokesman said: “We have tough sanctions for firms that break the rules and if any wrongdoing is discovered, we will take the necessary action.”