Published on : Tuesday, November 14, 2017
Abta has made a submission to the ministry of Justice from deterring the legal firms to profit unduly from false holiday sickness claims.
An increase by 500 % was observed in the amount of claims made since 2013 and there were no sign that there was a slow in its growth.
It is expected that a cap will prevent spurious claims.
Currently there is no limit on the legal fees that the lawyers can charge for overseas personal injury claims amounting to £25,000.
Abta expects that by stopping the unlimited fees and a fixed cost regime will provide a level playing field between the holiday sickness claims and other low- value personal injury claims.
This will provide legitimate claimants access to justice however leading to the overseas holiday market less attractive to claim management companies due to the reduction in the financial incentive that brings false claims to court.
The association was now awaiting the government’s response, it welcomed the opportunity of submitting the evidence on this issues that effected the members and travel industry at large.