The clampdown on holiday sickness claims is intensifying following a new government assessment.
Members of the Lord Justice Jackson Review Panel has recommended that holiday sickness claims should be included in the Fixed Recoverable Costs (FRC) regime, and treated in a similar manner to whiplash claims. The verdict has been welcomed by Association of British Travel Agents (ABTA) which stated it was “very good news for the travel industry and for holidaymakers”.
ABTA has been pushing hard for overseas holiday claims up to £25,000 to be reviewed by the panel. It aimed for the claims to be brought under the same fixed legal costs regime as other personal injury claims. It follows a spate of high profile cases where holidaymakers are being accused of making fraudulent illness submissions to acquire compensation from hotels and tour operators.
The organisation now believes that the loophole which touts were exploiting to secure compensation and legal costs was on the verge of being closed.
A spokesperson for ABTA said: “ABTA welcomes today’s publication of the Lord Justice Jackson Review, which recommends that holiday sickness claims should be included in the FRC regime, and should be treated in a similar way to whiplash claims.
“This is very good news for the travel industry and for holidaymakers, and follows months of work by ABTA and its members with the Ministry of Justice, asking that they close the claims loophole that has enabled unscrupulous claims companies and legal firms to target travel companies.”
The call for new reforms on holiday sickness claims follows a similar pattern of whiplash claims. Earlier this year, the Ministry of Justice (MoJ) announced that small claims limit for whiplash cases would rise to £5,000 in a bid to “crack down on the compensation culture epidemic”.
Ministers stated that there will be a fixed tariff to cap pay-outs for injuries of this ilk and that the MoJ would ensure that “payments are proportionate to the level of injury suffered”. It added that there had been discussion on whether no compensation should be offered for injuries lasting less than six months and it would ban offers to settle claims without medical evidence.
The MoJ stated that all the changes will be introduced on October 1st, 2018.
This stance of compensation claims is what ABTA is striving towards to put an end to exaggerated and fraudulent holiday sickness claims.
Read more from ABTA here – https://abta.com/about-us/press/abta-welcomes-governments-move-to-crackdown-on-false-holiday-sickness-claim