In January Abta revealed it had called for overseas holiday claims up to £25,000 to be brought under the same fixed recoverable legal costs regime that currently applies to other personal injury claims.

The call was contained in the association’s submission to the Lord Justice Jackson Review Panel, which was to consider further reforms to the UK’s civil justice regime.

Abta said the change was necessary to close an existing loophole that has enabled claims for overseas holiday sickness to fall outside of the existing fixed costs regime.

Jackson introduced his proposals at Chancery Lane this morning.

An Abta spokesperson said: “Abta welcomes today’s publication of the Lord Justice Jackson Review, which recommends that holiday sickness claims should be included in the Fixed Recoverable Costs (FRC) regime, and should be treated in a similar way to whiplash claims.

“This is very good news for the travel industry and for holidaymakers, and follows months of work by Abta and its members with the Ministry of Justice, asking that they close the claims loophole that has enabled unscrupulous claims companies and legal firms to target travel companies.

“The Justice Secretary, David Lidington, announced the government’s plans to amend existing laws in this area on July 9, and Lord Justice Jackson has today recognised the merits of this approach.

“We now look forward to the Ministry of Justice launching a Call for Evidence on the inclusion of holiday sickness claims in the FRC, expected in August.

“Abta encourages the travel industry and our partners to engage with this process. Once the Call for Evidence has been completed, it is essential that the necessary amendments should be brought forward as soon as possible.”