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Travel Insurance Fraud

Many insurers around the world have begun to underwrite travel risks as the business has boomed. Many travelers now appreciate the benefits of travel insurance and seek to cover themselves for any eventuality. However, some of the applicants have devised schemes to defraud insurers. Such claims originate not only from third world countries but around the world. Here, we share via articles, such schemes, many of which offer veritable lessons for Claims Examiners, Investigators, insurance attorneys, and independent legal advisers. To mitigate these scams should be a concerted effort by all.

In the articles, the first country in Capitals is where the claim originated. The second country is the location of the insurer.

Failing the commonsense test! / 3

GLOBAL – Most travel insurers have, therefore, expressed in their underwriting that in the event of a claim such as with the loss of baggage, personal effects, and money, the policyholder must take all reasonable steps towards the recovery of the items and in the apprehension of the perpetrator(s) and do nothing to jeopardize the position of the company.

The inebriated traveler!

CHINA / UNITED KINGDOM – The question that he would, therefore, subsequently answer to his insurer is, when has becoming inebriated with wine become tantamount to a felony? It was apparent here that this policyholder thought he could simply present the Examiners with a non-English document in Mandarin (Chinese language) and bamboozle them into a confused state to willy-nilly pay the amount of the claim.

CCTV revealed the facts!

INDIA / UNITED KINGDOM – The ASI showed us their records. We noted that the Police following the complaint visited the market and conducted the necessary investigations. The Police were able to access the CCTVs (Closed-Circuit Televisions) placed at strategic places in and around the market, but they did not see the scene of the alleged theft!

Sham theft in Sharm-el-Sheikh, Egypt!

EGYPT / UNITED KINGDOM – Ms. Doe could not answer the questions the Police posed to her such as where and when she lost the bag, who was with her when the bag got missing, etc. She claimed that she was not accusing anyone of the alleged theft. She then leaned over the table counter and advised them that she just wanted the report so that she would present the document to her travel insurer on return to the United Kingdom!

Failing the commonsense test! / 2

PAKISTAN / UNITED KINGDOM – The Police report, which was in the local language, Urdu, when translated into English, revealed that he had called at the station with an affidavit deposed before the local magistrate. It further indicated that he called at the station by 3.00 p.m. on that May 11, 2016 and presented the police officers an affidavit. In it, he stated that he was going home from the international airport when he was robbed at gun point. He stated the incident occurred on May 2, 2016.

Baggage, personal effects, and money loss (2) / Sri Lanka

SRI LANKA / UNITED KINGDOM – Thus, if there was any unauthorized arrest and torture, and Mr. Harsha did not want to go to the Police, he would have complained to the local council and would have been given a fair hearing. The local council may even take him to the Police and insist the complaint be recorded and acted upon. Our investigators noted the TNA would not condone this type of incident as they represent the interests of the Tamil people in the national government.

Baggage, personal effects, and money loss (1) / Pakistan

PAKISTAN / UNITED KINGDOM – Mr. Ahmed claimed that when they arrived at Khushab and he went to retrieve his baggage from the luggage compartment of the bus, he could not find them. He insisted the bags contained personal effects and some British pounds as he had earlier that day flown into Lahore from the United Kingdom where he permanently resides.

Failing the commonsense test! / 1

BULGARIA / UNITED KINGDOM – We posit that in such claims when the circumstances fail the commonsense test, it is an indication of a fraudulent claim. We have continued to receive such claims for work around the world even in 2022. The point would be driven home by discussing as many such cases that we come across. We begin with this claim filed with a United Kingdom travel insurer that originated in Bulgaria.

Kick that allegedly cost GB£220,000!

SYRIA / UNITED KINGDOM – The policyholder traveled from the United Kingdom on holiday to see his family in Syria. On his return to the United Kingdom, he filed claims for payment of benefits under his travel insurance (personal liability and medical expenses) policy. He alleged that he sustained injuries while playing a game of soccer in Damascus, Syria. He claimed that he went for the ball but instead kicked one of the
players in the head.