The travel industry must collaborate and have ‘robust processes’ in resort to challenge claims. Lee Hayhurst reports
Signs that the travel industry is fighting back against false illness claims have been welcomed by a leading travel industry lawyer.
Holiday firms can challenge fake claims, but they must act early and have the right processes in place, said Joanna Kolatsis, partner and head of aviation and travel at Hill Dickinson.
Last week it was reported that two Brits were arrested in Majorca on suspicion of soliciting fake claims, and firms such as Tui have vowed to fight suspicious claims rather than just pay out.
Kolatsis said: “I’m quite pleased to see people getting arrested and I’m quite pleased to see hotels and travel firms fighting back, but it’s going to take a lot more work.”
Hill Dickinson is advising its travel industry clients to make sure their overseas processes are robust so they have the evidence to hand to challenge spurious claims at an early stage.
However, Kolatsis said, the transitory nature of travel, with staff in resorts working seasonally, makes it difficult to collect and store evidence, with customers having up to three years to submit a claim.
“It’s about the processes you have got in place in resort,” she said. “There are lots of things companies can do to help themselves. If you have the correct reporting structures and records, you can go back with evidence straight away.”
Kolatsis backed Travel Weekly’s call for the closing of a loophole that allows claims management firms to levy unlimited legal costs for incidents that take place overseas.
She wants to see overseas gastric illness claims become subject to an online portal that administers claims of between £1,000 and £25,000, but which places a limit of £500 on legal costs.
Currently, while a single claimant may win £500 to £2,000, the legal fees could be nearer £50,000, offering a huge incentive for claims ‘farmers’ to pay for leads.
“The issue is at the moment we are subject to a one-way cost regime. It’s the costs where the lawyers are really making the money,” Kolatsis said.
“If overseas gastric illness claims were subject to the portal, the costs element would be minimised straight away.”
Kolatsis called on the wider travel industry, including destination management organisations, suppliers, hotels and operators, to work together.
“We have heard that suppliers, especially in Spain, are starting to look at the UK market completely differently because they are fed up with being hit by the costs,” she said.
“They are saying ‘if you are not going to work with us, expect us to look after ourselves and limit our liability to the UK market’.
“Some people get ill, but not to the extent that’s being claimed – thousands of people in what are really safe destinations.
“Historically, insurers paid out because it was easier to pay than fight the claims.
“But now the hotel industry is saying ‘you are not giving us the opportunity to defend ourselves’.
“Hopefully, as an industry, we will pull together to fight this.”
Case study: How Jet2holidays fought fake sickness claim with evidence from hotel
A couple from Liverpool travelled with Jet2holidays on a 12-day all-inclusive holiday to Gloria Palace, San Agustin, Gran Canaria, in July 2015.
More than 15 months after the couple returned from their holiday, the operator received a letter from a firm of Oldham-based solicitors, claiming damages due to food poisoning.
Neither Jet2holidays nor the hotel had received any complaint from the customer during their holiday or after.
The law firm claimed the couple both suffered “stomach cramps and severe diarrhoea”, and were “bedridden during an acute period of illness”.
The symptoms allegedly started on the second day of the holiday. The claim alleged the illness “spoilt the rest of the holiday”.
In investigating the claim with the hotel, Jet2holidays found records to show the customers continued to enjoy alcoholic drinks throughout their ‘illness’.
Evidence suggested the customers consumed at least six shots of spirits and mixers on the night of the alleged onset of the illness, more cocktails and spirits the night after, and a “very significant” quantity of beers and spirits two days after.
Jet2holidays chief executive Steve Heapy said: “The sharp rise in the number of sickness claims is costing hoteliers and travel companies dearly.
“We risk the actions of the dishonest few [claims farmers] spoiling the plans of many British holidaymakers. They
are fooling customers into thinking they can make a claim without any consequences, which is not true.”
Industry ‘must unite to fight fake gastric claims’
The travel industry can defeat spiralling gastric illness claims but it has to be as persistent as the insurance industry was in successfully fighting for changes in the law on whiplash claims.
Dave Burling (pictured), chief executive of Tui Group’s northern region, urged delegates at last week’s ITT Conference in Sorrento, Italy, to work together to combat the issue.
He said: “This is a situation in which claims firms are, to a large extent, tricking, or duping, customers to make illness claims when they have not had an illness.
“These are fraudulent claims that do risk prosecution. Everybody in the industry needs to work together on this. We have zero tolerance on what we think are fraudulent claims.
“Investigators will be looking at the activities of these claims management companies and where necessary, reporting them to regulators or even the police.”
Burling said: “This is an industry-wide issue. The consequence of not getting on top of it is hoteliers will not want to work with the UK. It’s easier for them to work with other markets.”
