Travel companies face rise in compensation claims
April 8th, 2009 - Chris Marshall
I was Sales and Marketying Director many many years ago for a Travel Assurance and Household Insurance company, and without fail at times of financial hardship claims went up dramatically. As such no great surprise in this article:
Stephen Mason, managing partner of Travlaw, which specialises in travel litigation, said that the company had witnessed a record increase in claims over the winter. He warned that operators can expect an ever bigger rise in new claims this summer, as holidaymakers ensure they get value for money from their breaks during the economic downturn.
These claims can vary from travellers seeking compensation for holidays that fail to live up to brochure descriptions to illnesses or injuries sustained while abroad.
“On the one hand travel companies are facing more claims and on the other they have fewer staff to deal with them,” said managing partner Stephen Mason. “It’s been a pattern in the last few downturns. When times are hard and affording a holiday is pushing the budget, claims are much more likely.”
Insurance claims are also rising. Last year, Britons made more than 560,000 medical claims totalling £383 million – up 58 per cent on 2007. Claims for lost luggage were the second most popular, with nearly 400,000 British travellers seeking around £8 million from their travel insurer – up eight per cent on 2007. Claims for flight cancellations were also up, rising 24 per cent to 240,000 claims.
“Medical claims are still the most costly for the travel insurance industry,” said Perry Wilson, founder of InsureandGo. “Unfortunately the average claim value seems to be rocketing, which highlights just how important it is for people to have adequate travel insurance, particularly when times are tough.”
Telegraph Travel reported last month that more than 3.3 million of the European Health Insurance Cards (EHIC), which have replaced the old E111 forms, will expire. These cards entitles holders to free or discounted health care in most European countries if they fall ill or have an accident while abroad. (Via Expat Life Spain)
