European hotel and resort operators are on the warpath against false claims by holiday-makers that they became sick from food or conditions at their hotels—they’ve asked British police to investigate.
According to the Association of British Travel Agents, there’s been a 434% increase in gastric illness claims since 2013, and there’s strong suspicion that it’s being fueled not by stomach-aches but by unscrupulous lawyers and claim managers who advertise how much can be made from a claim.
A large portion of the claims charge that vacationers got sick from buffet meals at all-inclusive resorts. Some resorts have turned to closed-circuit cameras and other ways to document fraud, and have filed counter-claims as high as €170,000.
ABTA is concerned, and has passed material to City of London police, where many insurance carriers are located, because it not only affects their relationships with vendors, it has the potential to force up prices to cover the claims. The British Foreign Office has also warned travelers in Portugal that they can now be prosecuted there for false claims.
One factor driving the claims higher is that if the payout is over £1000, the lawyers can claim fees and expenses from the defendant, on top of their share of what’s paid to the claimant. Critics have pointed to social media posts by claim management companies saying such things as “This couldn’t be any easier guys and payouts take about 4 weeks on average. Well in time to pay for your family’s next summer holiday!!!”
