Millions of cheated holidaymakers will now be able to take legal action against tour operators, travel agents or hoteliers for breach of contract without worrying about the legal fees, as travel insurance provider InsureandGo has launched a holiday dispute cover service that provides insurance cover for legal action taken against holiday service providers.
New research1 reveals that one in four British adults (24%), over 11 million people, have suffered from breaches of contract such as hotels that weren’t fully built, swimming pools with no water in them and “sea views” onto building sites, yet only 5 per cent of these people took legal action against the offending companies in order to claim compensation. InsureandGo has set up the new service to offer support to those victims of contract breaches who are too worried about legal costs to pursue a compensation claim.
The victims of these holiday nightmares put an average value of around £776 on the breaches of contract they suffered, totalling an estimated £8.68 billion worth of compensation, most of which has never been paid to its victims.
Perry Wilson, founder of InsureandGo, commented: “Holidaymakers are potentially losing out on a lot of money by not pursuing their holiday complaints. At least 12 per cent of breaches of contract that occur are estimated to be worth over £1,000, yet a lot of us either don’t complain at all, or let ourselves be fobbed off by the offending company because we are scared of how much it will cost to pursue our complaint in the courts.
“Our research shows that of those people that do take legal action, 95 per cent received compensation and the average amount won was over £1,500, so it’s often well worth pursuing a claim. Hopefully our new service will give people the peace of mind to pursue holiday companies that don’t deliver what they promise.”
The most common breach of contract suffered was a misleading description of location or accommodation, experienced by one in ten (10%) adults. Around 8 per cent of adults have suffered from non-functioning or faulty facilities, 2 per cent have suffered accidents or injuries because of unsafe equipment or facilities, and 2 per cent have experienced a swimming pool with no water in it. Around 3 per cent of adults have been provided with the wrong make or model of hire car on holiday.
The research reveals that while most people suffering a perceived breach of contract will make some form of complaint whilst on holiday (54%), only one in twenty take legal action (5%) and one in five (20%) don’t make any form of complaint at all. Of those who have made some form of complaint, 61 per cent thought the company’s response was poor, compared to only 18 per cent who thought the response was good.
InsureandGo’s holiday dispute cover covers customers’ legal costs for claims against tour operators, travel agents, car hire companies, airlines, ferry or train providers, cruise liners or hoteliers. If cover is bought at the same time as your insurance policy, the supplementary cost is £4 for a single trip and £7 for an annual multi trip policy.
Standard (Silver) Prices
Europe, including 17 days winter sports
Annual, one adult up to three under 18s = £38
Annual, two adults up to six under 18s = £68
Worldwide including US/CAN and 17 days winter sports
Annual, one adult up to three under 18s = £54
Annual, two adults up to six under 18s = £84
1: 2051 GB adults aged 18 years and over were interviewed online by ICM, between 20th – 22nd November 2009. Surveys were conducted across the country and the results have been weighted to the profile of all adults. ICM is a member of the British Polling Council and abides by its rules.
