Whatever the financial situation in their homeland, people always want to go on holiday to get "away from it all".

Historically, claims rise during an economic downturn and as one leading litigator in the travel and holiday insurance sector pointed out, holiday dreams can soon turn into vacation nightmares.

There have been situations where people file false compensation claim on supposedly lost luggage and lost passports just to cash in on some money during the credit crunch. These incidents are extreme however, and some holiday goers do experience genuine disasters.

The compensation expert said that during the winter of 2008/2009, his company received a record increase in no win no fee claims. Therefore, he warned that summer holiday makers would be likely to make further high levels of claims in the ensuing summer.

"On the one hand travel companies are facing more claims and on the other they have fewer staff to deal with them. It's been a pattern in the last few downturns. When times are hard and affording a holiday is pushing the budget, claims are much more likely," he commented.

The increase in claims is blamed upon the holiday market placing greater importance on getting value for money. As a result, when the ideal of a holiday destination fails to live up to brochure descriptions or people receive personal injuries via food poisoning; their first instinct is to get a refund.

He revealed that in 2008, 560,000 British travellers made holiday claims for medical compensation on their travel insurance, valued at £380 million. This statistic represented a 58% rise on 2007.

An insurance expert said: "Medical claims are still the most costly for the travel insurance industry. Unfortunately the average claim value seems to be rocketing, which highlights just how important it is for people to have adequate travel insurance, particularly when times are tough."

No win no fee claim

As a result, many no win no fee lawyers remind holiday goers that if they have a genuine accident or health risk whilst on holiday, resulting in a personal injury, and the travel firm is in any way liable, then the travellers could be entitled to make a claim.

Alex Boxall, a personal injury spokesperson commented on this issue: "Dealing with the aftermath of a holiday accident can be really difficult.

"Most people's working lives are often only made bearable by the prospect of rest and relaxation on the horizon. If that is then swept away, it can take some major psychological readjustment to come to terms with.

"While a holiday accident claim may never truly compensate for the loss of that long-planned-for holiday, it can help soften the blows in three different ways financially, psychologically and physically."

"A no win, no fee solicitor enables ordinary Britons to do that and with us they receive the very best legal representation, but without risking any of their financial security. That is why we exist: to serve ordinary UK people who are deserving of no-cost legal assistance."

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