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HOW DOES THE GOVERNMENT PLAN TO CLAMP DOWN ON BOGUS COMPENSATION CLAIMS?  

Ministers announced last year they plan to reduce cash incentives to bring spurious claims against package holiday tour operators. 

Under these proposals tour operators would pay a prescribed sum depending on the value of the claim, making the cost of defending a claim predictable. 

A system to control costs already exists for most personal injury claims in England and Wales, but a loophole is being exploited in foreign holiday claims.

To prevent this ministers asked the Civil Procedure Rule Committee, which is responsible for setting rules on legal costs, to urgently look at the rules governing the costs of holiday claims. 

As a result of these proposed changes, fixed recoverable costs can be extended to cover claims arising abroad, closing the loophole and meaning that pay-outs for tour operators will be subject to stricter controls.

The vast majority of holidaymakers will not make false claims, and those with genuine claims will still be able to claim damages. But these changes will crack down on those who do make bogus claims and help stop the price of package holidays soaring for the honest majority. 

The government will also be bringing forward proposals to tackle the continuing high number and cost of whiplash claims via the Civil Liability Bill.

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