An unscrupulous minority of travellers are abusing travel insurance by making fraudulent claims, resulting in rising premiums for the honest majority, according to Be Wiser Insurance.
Mark Bower-Dyke, Chairman of Be Wiser Insurance, says “We estimate that over 10% of all claims made are falsified, so insurance companies are paying careful attention when it comes to rooting out these dishonest travel insurance claims.”
Because of the time and money spent finding or paying false claimants, costs can rise for the rest of us.
Bower-Dyke continues “It seems that a few people are abusing their policies to get hold of a lump sum of cash as quickly as possible – this affects our process of examining claims and harms those genuine people who have a legitimate claim."
However, for those who get caught there are repercussions:
“Those who are looking to make a quick buck will find it very difficult to secure cheap insurance policies in the future, as every claim they make stays on file. Fraudulent claims could remain on their credit history for four years – leading to problems securing loans, mortgages and insurance.”
Mark Bower-Dyke concludes: “This should not put off those making a genuine claim; Be Wiser recommends buying travel insurance for peace of mind or in case the worst should happen . After all, 90% of us wouldn’t dream of making a false claim!”