Travel insurance fraud spikes in the UK

Travel Insurance

The summer heat wave is being blame for the sudden skyrocketing levels of fraudulent claims.

Cancelled vacation and lost baggage travel insurance claims have risen sharply during the summer of 2013 and the heat wave that briefly held in place over the United Kingdom is being blamed.

Vacationers frequently decided to stay home in the hot weather since they didn’t need to pay to seek it elsewhere.

The travel insurance fraud associated with cancelling pre-booked vacations in order to opt to remain at home because the weather remained hot is a scam that is rapidly rising. Typically, this sector of the industry has a low claim threshold that is low in value and that is led by price. As a result of the number of claims that have been coming in, this year, that tradition could soon be changed.

Travel InsuranceSome vacationers are using false excuses to be able to claim the cancellation on their travel insurance.

According to a firm that works to uncover fraud in the industry, VFM Services, there are some vacationers who have been cancelling their trips overseas and that have been claiming reasons such as medical emergencies so that the cancellation will be covered by their policies.

The firm also released a statement that said that “Our investigators are already seeing cancellation claims, and as people return from their holidays fraudulent travel claims will continue to rise as holidaymakers also submit their baggage claims.”

Among all of the travel insurance claims that are submitted to VFM for investigation, four out of every ten are found to be either fraudulent or have not been followed through by the claimant after they have been challenged by the investigators. For the claims regarding lost luggage, the airports are contacted by VFM in order to view baggage carousel CCTV footage. Frequently, claimants are asked to sign releases by the VFM, so that the firm has permission to make the video request form the airports. In these areas, it is common for the customer to cease their pursuit of the claim.

The average travel insurance cancellation claim will typically lead to a payment of £1,200. VFM expects that the claims for this season are far from over.

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