Travel Insurance Companies Fear Bogus Claims

Posted by admin

August 13, 2008

Let’s face it, the credit crunch, credit crisis, recession, whatever you want to call it, is hurting most peoples’ pockets. Only a year ago credit was very easy to obtain and people went about their way merrily spending, enjoying fun-filled holidays, the works.

Even though it’s been almost a year of realising the economy is suffering, many people just don’t want to “let go” of the frivolous spending until we ride this lull in the market out. OK, perhaps “lull” is an understatement. Nonetheless, it’s a bit disconcerting when you read how car insurers, and now travel insurers, are seeing a rise in fraudulent claims.

As it stands, travel insurers are preparing themselves for “hard-up” holidaymakers who won’t hesitate making a bogus claim such as losing expensive items or over-valuing the cost of what they claim was lost or stolen.

The car insurance industry reports a 13% increase in suspicious claims over the past few months according to the Guardian. Now, similar figures are anticipated within the travel insurance industry.

Director of development at CEGA Group Rob Upton says, “With the economy going the way it is, people might claim for smaller losses when, otherwise, they might not have bothered.”

So, does a weak economy bring out the worst in people? Travel insurers don’t want to take that chance. Counter-measures are already being put into action including training staff to detect “nervy responses”.

OK, I’m all for the insurance industry covering their assets, but training staff to detect fraud by way of a claimant’s response to questioning is a bit intangible. Other methods being employed, such as demanding to see receipts for items claimed lost or stolen is much more reasonable, don’t you think?

No doubt the credit crunch has most of us worried about the cost of living. Keep receipts, guard your possessions when traveling and simply cut back on unscrupulous spending until the economy bounces back.

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