One in five holidaymakers who claimed on their travel insurance policy last year fraudulently boosted their application

One in five holidaymakers who claimed on their travel insurance policy last year fraudulently boosted their application, according to research from the insurer Direct Line.

One in five holidaymakers who claimed on their travel insurance policy last year fraudulently boosted their application, according to research from the insurer Direct Line.

A lost or smashed camera was the most common false claim made, followed by jewellery, clothing and iPods. More than 10 per cent of the fraud was committed by holidaymakers knowingly inflating a genuine claim, often by as much as £100, Direct Line reported.

While receipts showing proof of purchase are usually requested by insurance companies when a claim is made, many policyholders get round this by pretending to have lost the relevant paperwork.

Figures from the Association of British Insurers show that fraudulent claims cost insurers at least £50m a year. This expense is usually borne by the consumer, in the form of an increase in premiums.