Travel Review Tips by the Avanti Group: Ten things you need to know about travel insurance fraud

1. “A lot of people making fraudulent claims on their travel insurance are first time fraudsters, and don’t realise how serious it is to make a false claim,” says Simon Cook, Head of Special Investigations at claims management and assistance company, CEGA.

2. “Making a false travel insurance claim can result in a criminal record, which would make it very difficult, for instance, to take out any sort of insurance policy in the future - and that includes car and household insurance,” says Simon Cook. “In a worst case scenario, it could lead to a prison sentence.”

3. Top of the list of fraudulent travel insurance claims? “It’s common for someone who has suffered a genuine loss to add a few noughts to the value of that loss - a Sekonda watch might become a Rolex for instance,” says Malcolm Tarling of the Association of British Insurers. “Exaggerated losses, false claims for lost baggage and fictitious medical treatment are among the most common fraudulent claims,” adds Simon Cook.

4. “If a false travel insurance claim is submitted but withdrawn after having second thoughts, it can still lead to a prosecution for fraud,” says Simon Cook.

5. “Insurers will check every detail of a dubious claim; from the authenticity of a doctor’s bill handed out on the other side of the world, to the validity of a witness statement in a foreign language,” says Simon Cook. “Cognitive interviewing techniques, investigation by overseas agents and medical assessments may all be used to assess the honesty of a suspicious claim.”

6. “Fraudulent travel insurance claims put up the cost of everyone’s insurance premiums,” says Simon Cook. “In other words, innocent travellers foot the bill for fraudulent claims.”

7. “An item lost on holiday may be covered by both a household and travel insurance policy - but the full value of the loss cannot be claimed for twice, otherwise it is considered to be committing fraud,” says Simon Cook. “However, it is possible to claim some of the cost of the loss from one policy and some from the other, if full cover is not given by one policy. It is always best for individuals to be honest with their insurers about other relevant policies and to ask for advice if it is needed.”

8. “Some people may be tempted to make a false claim for a laptop or priceless family heirloom “lost” in luggage that has been checked in at the airport, but they shouldn’t bother,” says Simon Cook. “Valuables on planes are not covered by travel insurance unless they are carried as hand luggage.”

9. "The vast majority of customers are honest,” says Aidan Kerr, the Association of British Insurers’ Assistant Director, Head of Fraud. “The more that is done to crackdown on the dishonest, the quicker and more effectively insurers can deal with the claims from the honest majority.”

10. “To help a genuine claim go smoothly, it is vital to tell the insurance company about an emergency situation as soon as it happens and follow their advice on what to do next,” concludes Simon Cook.

With over 40 years’ experience, Sussex-based CEGA Group is one of the leading independent claims and global assistance providers for the insurance market. Travel risk management, claims handling, medical assistance, special investigations, cost containment and air ambulance services are all managed from one location, which means that CEGA is able to provide a fully integrated, cost effective, end-to-end service. The group is the UK’s only travel assistance provider to operate its own air ambulance fleet.