Warm weather ‘prompts rise in travel insurance fraud’

This summer’s high temperatures have prompted a rise in false travel insurance claims, industry experts have claimed.

Travel Insurance News - 05/09/2013

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This summer’s high temperatures have prompted a rise in false travel insurance claims, industry experts have claimed.

The news comes via a new report published this week by The Guardian, in which analysts say that the number of cancelled trip claims among Britons has risen substantially over the past several weeks. Many firms suspect the change is the result of sizzling weather in the region, which may have prompted many travellers to forego bookings and opt for a warm and less expensive holiday at home.

Officials from VFM Services, a company often commissioned to identify instances of fraudulent claims in the insurance industry, told the media that many of those cancelling trips have cited “emergencies”.

More than in every four cases investigated by VFM turns out to fraudulent in one way or another, according to the report. The company’s figures reveal and that about 45 per cent of all claims are investigated for fraud, and around 60 per cent of those are withdrawn after the firm places a single phone call to the claimant. The average cost of a cancellation claim is about £1,200.

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