ABI warns against fraudulent travel insurance claims


Unscrupulous people, considering making a fraudulent claim on their travel insurance during their summer holiday this year, may just want to think carefully about it in view of what the ABI (Association of British Insurers) has recently said about what could happen to people if they are caught making a fraudulent claim.

According to the ABI, last year alone there were 4,300 false claims made on travel insurance policies. This amounts to a figure of over 80 every week, which would have cost £5 million for insurance companies.

But now it is warning people about the repercussions that it could cause in the future. If you get caught making a false claim, this could lead to higher insurance costs for you in the future, more expensive credit, much greater difficulty purchasing other types of insurance such as home and car insurance, and even the chance of prosecution.

Details of all fraudulent claims are held in industry-wide databases which are used by both insurance companies and other financial institutions. Because of this, making a false claim can affect your credit rating in the future.

Nick Starling, director of general insurance and health at ABI, said that travel insurance is “not to pay the cost of your holiday”, and is just a precautionary measure should something go wrong. The ABI also warned potential fraudulent claimants that overseas police departments are becoming a lot more vigilant in the fight against false claims.

The most common types of suspicious claims are those involving expensive items such as iPods and portable DVD players, and those where the item was lost just before returning home and the claimant did not have time to contact the police.


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