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Further action needed on fake sickness claims

Government
James Chapple
18 April 2018

Concerns have been aired that new measures to curb false holiday sickness claims do not go far enough to clip the wings of cold callers and “unscrupulous” claims management companies (CMCs).

Mediterranean beach

The industry this week cautiously welcomed a government pledge to bring claims arising from overseas package holidays within a fixed costs regime, after previously being unlimited.


This shuts a loophole the industry says has fuelled a rise in bogus claims and pushed up costs for British tourists, with operators often settling out of court – emboldening CMCs.


The Ministry of Justice (MoJ) said the rules would be enforced in the coming weeks, in time for the summer holiday season.


However, separate legislation working its way through government to ban cold calling and bolster regulation of CMCs is still thought to be some way off.