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Spike in insurance claims spells death for Spanish package holidays

Benidorm beach holsLawyers claim all inclusive package holidays to Spain could be heading for the pages of history books. A Madrid firm of solicitors says the huge number of bogus insurance claims for illnesses lodged by Brits will force Spanish hotels to scrap full-board packages.

Insurance industry law company Rogers & Co said the soaring number of claims was bound to result in Spanish hotels jacking up prices for low cost holidays or just wiping them from itineraries altogether. The company’s David Diez Ramos explained that Brits could get a fortnight’s holiday in Spain for £1,000.

Mr Ramos said that if hoteliers got hit with claims for £3,000 with another £5,000 in lawyers’ fees, it was only a matter of time before they acted. Tourism and travel industry professionals in the UK say the process has begun as some hotels in the Canary Islands have already scrubbed their all-inclusive package holidays.

The issue first reared its head six months ago with journalists saying insurance agents were urging UK holidaymakers to put in large claims for what were usually minor injuries or ailments. The headline stories made enough of a splash so that even the UK’s Foreign & Commonwealth Office got involved.

The FCO tweaked its Spain advice with a note saying there had been numerous reports of British holidaymakers in Spain being persuaded to submit large personal injury claims for stomach upsets. The advisory cautioned that personal injury claims later found to be fraudulent would probably result in the claimant facing legal action.

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