6 Things You Need To Know About Travel Insurance Fraud

Published - 16 January 2021, Saturday

Travel insurance fraud is a serious matter that unfortunately doesn’t receive a great deal of attention.

You might not be aware of some of the common misconceptions about travel insurance fraud. The fact is that travel insurance fraud leads to a number of different problems that have a serious effect. Here are a few things that you need to know about travel insurance fraud.

Find out the top 14 reasons travel insurance claims are denied


It is a big deal

The Wise Traveller

Most people assume that travel insurance fraud is not really something too serious. Perhaps it has to do with the fact that going on vacation is supposed to be a break from the norm, but many people who file a fraudulent travel insurance claim have never tried to defraud any other instance before.

The Wise Traveller

Those people who file a claim in an attempt to commit travel insurance fraud do not realise that this might result in a criminal record of their action. While a prison sentence would be the worst-case scenario, far more probable is the idea that a conviction might make it almost impossible to take out any sort of insurance policy in the future. Imagine not being able to have household or car insurance because you were trying to get some money for a non-existent luxury bag. Hardly seems worth it.


Exaggeration is fraud

The Wise Traveller

Most travel insurance fraud claims are not people just outright making stuff up – it is often exaggeration of the value of something that they have actually lost. They might have lost a Coach bag, but suddenly they will report that it was a Louis Vuitton. Their watch might have been broken on a boat trip, but what was once a Calvin Klein watch suddenly becomes a Rolex. The most common fraudulent claims include fictitious medical treatment, false claims for lost baggage, and these exaggerated losses.


Regret later on is not good enough

The Wise Traveller

Some people file an official request in an attempt to commit travel insurance fraud. They might later regret the decision, but still be liable to prosecution. This is why it’s important to consider travel insurance fraud beforehand. Even if you have regrets later, filing a false claim might still come back to haunt you.


It raises everyone’s premium

The Wise Traveller

Some people are able to justify travel insurance fraud by saying that they have never declared anything before. The truth is that fraudulent travel insurance claims do come at a cost – they raise insurance premiums for everyone. These fraudulent claims are not a “victimless crime”; the money has to come from somewhere. In short, it means that people who are not committing travel insurance fraud are actively paying more for those who are.

What things can you do that will void your travel insurance?


Mistakes may count as fraud

The Wise Traveller

If you lose something/have it stolen/have it break during your vacation, it may be covered by your travel insurance policy and your household policy. However, you might be committing fraud if you try to claim the full value of your loss on both accounts. If you do not have full coverage by one policy, you are allowed to try to claim the cost of a loss from one policy or the other (in part). Even in those cases, asking for professional advice is always the better choice.


Thinking about it clearly

Even though claiming on your travel insurance can be tempting, especially if you feel that you’re only paying without ever claiming, it’s always a better idea to invest in good, comprehensive annual travel cover option. That way, you’re less likely to have the desire to make up your payments with a false claim, and you’re able to avoid a litany of problems associated with travel insurance fraud.

Disclaimer: Any comments or opinions provided in this article are informal commentary only and cannot be considered as specific advice to be acted upon.


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