Fraudulent backpacking claims rife

InsureandGo (www.insureandgo.com), the leading online travel insurance provider, has issued a warning that fraudulent backpacking travel insurance claims are rife.  It reveals that despite its average backpacking travel insurance policy lasting for 29 days of its claims under this policy are made within the last 21 days before cover expires, accounting for 24% of settlements.  InsureandGo believes that a significant number of these claims may be fraudulent. 

Perry Wilson, founder of InsureandGo, said: “The case last year of the two British law graduates found guilty of making fraudulent travel insurance claims in Brazil highlights the existence of this problem and the fact that overseas police forces are cracking down on it.  We are concerned that as more gap year trips are being taken because of the current economic climate, more claims will be made and some of them will fraudulent.”

InsureandGo is warning people against making fraudulent travel insurance claims because, if caught, they could face a custodial sentence.  Details of fraudulent claims are also kept on an industry-wide database which can be accessed by the Financial Services Authority and insurance companies, which means that the culprits are likely to face higher premiums or find it difficult to secure cover at all. It can also affect your chances of securing other types of cover such as home insurance.

InsureandGo’s backpacking policies offer a range of benefits such as a 24-hour worldwide emergency medical helpline, available 365 days a year, and automatically cover a wide range of adventure sports and activities including bungee jumping, white water rafting and jet skiing.

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