Even though the authorities have done much to streamline the personal injury claims market, and try to rid the industry of bogus claims, there always seems to be a loophole somewhere. The main loophole tends to be the fact that relatively small claims, for example, £5000, would cost significantly more to defend in court. Therefore, many hotel companies are advised by their insurance agents to simply pay up rather than risk far greater legal expenses.
This seems to be a growing issue abroad with UK holidaymakers seemingly targeted by bogus personal injury claim companies. This has resulted in some British tour operators being taken off a list of Turkish hotel companies because it is simply not worth the risk.
Is This A Growing Problem?
Data suggest that “fake” illness claims from UK holidaymakers are up by 434% since 2013. In some ways, it depends on how you gather this data and how you group it, but the fact is that alleged fake illness claims are on the rise.
The problem is so bad in some areas of Europe that Turkish hotel owners in some of the more popular resorts have now opted to work with their German counterparts as opposed to UK tour operators. We also have Spanish hotel companies monitoring customers using electronic wristbands to see exactly where they have been and what they have bought – something which could protect them in later court cases.
One of the main scams seems to revolve around food poisoning, or should we say alleged food poisoning, in various hotels. Due to the European legal system, claims for personal injury can sometimes be made years down the line where evidence may be difficult to obtain and, as we touched on above, it might be cheaper just to pay out on relatively small claims.
ABTA
The Association of British Travel Agents has been quoted in various newspapers suggesting illness claims are up by 434% but some hotel companies are reporting increases of 700%. In what is akin to ambulance chasing, many UK holidaymakers have reportedly been approached by bogus personal injury claim companies to enter actions against hotel operators.
While there have been rumours for some years, we are starting to hear the same story about holidaymakers being coached about what they must do to strengthen any claim. First of all it is advised that they “tell somebody at the hotel” whether this is a receptionist, worker or management. This “evidence” will be used further down the line even if it is not technically possible to confirm that the issue was actually reported in person. There is a suggestion that up to 99% of holidaymaker personal injury claims in Turkey have no evidence to back them up even if they are legitimate.
Who Foots The Bill For Any Successful Claim?
When making a personal injury claim against a hotelier the vast majority of holidaymakers will first approach the holiday company which organised the break. There will obviously be relevant paperwork to complete and details to pass forward but the holiday companies will then approach the underlying hotel operators. This is purely and simply business, passing on any claims from customers to the “guilty” party, but it is having a significant impact on the UK holiday market.
If you put yourself in the position of a hotel group working in partnership with a UK tour operator, how would you react? The general consensus seems to be that an average £5000 claim for gastric illness would cost around £40,000 to defend in court. In a perfect world hotel groups would come together to fund initial claims in order to set some kind of precedent. However, even this may not be enough because ultimately the courts need to be very careful as some claims will be fully justified.
Hotel Groups Fighting Back
The Benidorm, Costa Blanca and Valencia Region Hotel Association have been very proactive in trying to protect members. As a consequence, a number of all-inclusive hotels in these areas now issue customers with electronic wristbands which they swipe as and when they order food and drink. This allows the hotel to not only monitor their food and drink intake but also monitor where they are at any specific moment within the hotel complex. As Nuria Montes, the general secretary of Hosbec (hoteliers association of Benidorm and Costa Blanca) commented:-
“We have a much better chance of proving we’re dealing with a fraudulent claim if someone has drunk 27 beers and 14 gin and tonics and hasn’t been confined ill to their room.”
It is very disappointing that hotel groups have to put such systems in place to protect themselves from bogus personal injury claims. Inadvertently, this could strengthen the case of those who have legitimate claims against hotel groups because there is a track record of what they have drunk, what they have eaten and where they have been. Indeed, using these wristbands it is even possible to tell whether a customer has been confined to their room.
Casting A Cloud Over Legitimate Claims
Whether we are looking at personal injury claims involving car injuries, or in this case food poisoning, the number of bogus claims casts a very dark cloud over legitimate claims.
Even though many of the alleged bogus claims use “standard copy” from the same solicitors it can be extremely costly to separate legitimate from illegitimate claims. As a consequence even successful legitimate claims can be looked at with suspicion simply because of the ever-growing number of fraudulent claims.
If you take a moment to sit back, there does not appear to be a simple solution to small personal injury claims which would cost more to defend in court. Even trying to make an example, and set a precedent, might have little relevance in the longer term as each case will need to be looked at on its own merits. The only people to suffer in this particular instance are UK holidaymakers who are now seeing some of the more popular European hotel destinations crossed off their list.
To Conclude
There seem to be various trends in the personal injury claims market with bogus companies allegedly targeting various sectors. In years gone by motorists were targeted and now it appears that the holiday market has been earmarked for a deluge of claims. It is obviously illegal to encourage anyone to put forward a fraudulent personal injury claim but such is the cost of defending such actions in court many “guilty parties” are forced to pay up even if there is little or no evidence.
Perhaps the best way to try and tackle this problem would be to target the bogus personal injury claim companies and put them out of business. In some cases they will emerge under a different name but if the authorities are able to make life as difficult as possible, and indeed consumers are made more aware of their moral obligations, perhaps we can start to get to grips with this problem?
