The Government is to close a legal loophole linked to a sharp rise in compensation claims for sickness during package holidays.
The Ministry of Justice has announced that it will introduce curbs on the court costs which can be incurred by tour operators, bringing the laws around package holiday illness claims in line with those already in place for other personal injury cases, the BBC reports.
The changes will come into effect “in the coming weeks”, just in time for the summer holiday season.
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Until now, there were no limits on the legal fees facing tour operators who challenged questionable claims of food poisoning allegedly suffered at all-inclusive resorts.
As a result, many firms opted for out-of-court settlements, which in turn is thought to have encouraged “shady” law firms to spurious claims in the hopes of an easy payout, The Sun reports.
“Touts have been caught approaching tourists in European resorts and convincing them to make a claim,” the paper adds.
Travel industry body Abta estimates that claims relating to package holiday sickness have skyrocketed by 500% in recent years, even as reported outbreaks of food poisoning in resorts have dropped. Around 35,000 claims were submitted in 2016, compared to 5,000 in 2013.
The spike in illness claims “sparked concerns that the UK’s reputation overseas is being damaged and that British tourists will face higher package holiday prices”, says industry magazine Travel Weekly.
Announcing the crackdown, 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,” he said.
“That is why we are introducing measures to crack down on those who engage in this dishonest practice.”
