UK Travel Insurance News

Friday, April 15, 2005

 

Britons use "White Lies" to bump up holiday claims

It seems that honesty is not always the most common policy when it comes to travel insurance claims, with Britons lying about their holiday mishaps.

Research conducted by Direct Line Travel Insurance reveals that almost a fifth (19%) of British holidaymakers who claimed on their travel insurance made false claims, with one in 10 (13%) inflating the value of their claim and 5% adding items to the list of stolen or lost possessions.

Cameras (27%) are the most likely item to be falsified in claims, followed by clothes and cash (both 13%). The loss or damage of jewellery, designer sunglasses, iPods and MP3 players is also misrepresented by one in 10 holidaymakers.

Men are the worst culprits, representing a fifth (21%) of those who had made up little white insurance lies, compared to 17% of women. These little white lies soon add up though, as 24% of holidaymakers who enhance a claim do so by more than £100, with eight per cent adding over £400.

More than one in 10 (15%) justify their claim by saying they need the money, and 9% blame friends for persuading them to lie. Worryingly, public tolerance of bogus or exaggerated claims appears to be high, with more than one in five (22%) believing they are owed the money because they haven't claimed before.

Chris Price, Direct Line Travel Insurance comments: "As a major insurer we deal with thousands of travel claims on a yearly basis, the majority of which are authentic. However the results of our research are disturbing and it's worrying to see how many dishonest claims are made. We would urge people to think twice before carrying out insurance fraud though as it ultimately affects the price all policyholders pay for their travel insurance. At Direct Line we're clamping down on fraud and are determined to keep premiums at a minimum so honest customers aren't penalised."

Top Dishonest Claim Items:
1. Camera (27%)
2. Clothes (13%)
3. Cash (13%)
4. Jewellery (10%)
5. Ipod/MP3 (10%)
6. Designer sunglasses (10%)
7. Wallet/purse (7%)
8. Medical bill (6%)

posted by UK Insurance Index  @ 5:48 PM

News items are intended for information only and should not be relied upon when making insurance decisions. Due to their nature some of the information in these news stories may no longer be current.