New rules to cut bogus travel sickness claims will come into force before the summer holiday season, the Government has announced. A loophole believed to have led to a spike in the number of false claims will be closed in the coming weeks. Under existing regulations the legal costs of defending civil claims for sickness overseas have not been capped, meaning they could far exceed the value of the payouts sought. This discouraged travel firms from challenging compensation bids and is blamed by the travel industry for tens of thousands of UK holidaymakers making claims – typically worth around £3,000 to £5,000 each – despite reported sickness levels in resorts remaining stable. Making defence costs predictable will assist tour operators in challenging bogus claims, according to the Government. 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.” Dozens of firms have been set up in recent years to encourage people to… Read full this story
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