Warning over fake insurance claims
Holidaymakers are being warned they face higher insurance costs and even prosecution if they cheat on their travel insurance.
According to the ABI, 4,300 dishonest travel insurance claims, equivalent to 80 per week, were made last year totalling £5 million.
But insurers and overseas police forces are becoming more vigilant and are looking to crack down on the number of people who cheat the system. Those who do are being warned they could also face more expensive credit and problems in obtaining other insurances.
Some of the holidaymakers caught out include a photographer who was jailed for three months after he claimed for £8,000 worth of camera equipment allegedly damaged while on holiday, and a holidaymaker in Cyprus reporting an alleged theft who was caught when the resort police discovered the 'stolen' items in her friend's handbag.
Nick Starling, the ABI's Director of General Insurance and Health, said: "Travel insurance is there to cover you if things go wrong, not to pay for the cost of your holiday. The vast majority of claimants are honest, but the dishonest few are in for a nasty and expensive shock this summer. Details of fraudulent claims are held on industry databases, which will impact on the cost and availability of other types of insurance and affect an individual's credit rating."