Packing your suitcases before going on holiday is usually the only thing on your mind when heading off for a well deserved holiday. Disclosing pre-existing health conditions usually is not. However it should be, Holidaymakers with pre-existing health conditions must be honest with insurers when they buy travel cover. In a survey by insurance provider Direct line travel insurance, they discovered that nearly eight million holidaymakers have tried to make a bogus claim on their travel insurance. In particular, 750,000 Britons make false claims on their travel insurance by either falsifying losses or exaggerating how much they have lost.

Contemplating committing fraud is a serious matter, but many people simply don’t realise that when they exaggerate a travel insurance claim they are actually committing fraud. While falsifying or exaggerating a claim may seem like a harmless ‘white lie’, in fact it is a crime.

Unfortunately those that are dishonest are likely to negatively impact honest travel insurance policyholders by way of higher insurance premiums. This relates to the bigger picture of insurance fraud, the Association of British Insurers (ABI) warned that fraudulent claims are not just leaving insurers out of pocket – they are also penalising honest customers.

The industry body estimated that consumers are paying almost £40 more on average in premiums than they need to because insurers are forced to cover the costs of false claims. Those that do lie usually exaggerate the cost of items lost. Direct Line found that the most popular item for over-claiming was sunglasses, with a quarter of those surveyed admitting they had lied about how valuable their shades were. Other popular areas for exaggerating values were luggage, medical bills, mobile phones and cameras.

The fraudsters do not stop at just exaggerating. Many fraudulent claims involve falsified or doctored receipts, which are normally required by insurers as proof of the value of medical costs or lost or stolen goods. They do not ever have the last laugh though, as for those that are caught making a false claim, the punishment is often severe. They will lose the money they have claimed for and could also face further financial penalties for their actions.

The fraudster’s actions do not benefit them in any way but rather hurt honest travel insurance policyholders. The survey found that 62% of those who tried to put in a bogus claim failed to get a pay out after their insurer became suspicious. Nonetheless travel insurance fraud is costing the industry, it is classed as ‘opportunistic fraud’ which includes lying about the value of lost or damaged items when submitting a claim or listing items in the aftermath of a burglary in the hotel while on holiday, for example, which were not stolen. The ABI estimates that opportunistic fraud costs the industry around £800 million a year.