30 Mar 2017
ABTA announces new Personal Injury Scheme
ABTA is launching a new, independent Alternative Dispute Resolution (ADR) Scheme for Personal Injury. The mediation scheme is a simple and cost effective means for Members and consumers to resolve personal injury claims, including holiday sickness claims, up to £10,000. The scheme is administered by the Centre for Effective Dispute Resolution (CEDR), which is approved by the Chartered Trading Standards Institute (CTSI).
The new scheme offers travel companies and holidaymakers a means of resolving complaints without the need to go to court, which can be costly and time-consuming. ADR decisions take no longer than eight weeks from start to finish. Additionally, with ADR there is no need for the holidaymaker to work with a claims management company, meaning that they would receive any award in full.
Since changes to the law in 2013, there has been a dramatic rise in holiday sickness claims, while reported sickness levels in resort remain stable. Holiday sickness claims now represent 9 in 10 personal injury complaints received by ABTA Members – a figure that stood at around 60% in 2013. Due to a loophole in the law, holiday sickness claims have become a lucrative area for claims management companies who typically take a significant cut out of any award.
ABTA’s ADR is open to holidaymakers who have booked with an ABTA travel company and are unable to resolve their differences through the company’s complaints process. The scheme is voluntary and both parties have to agree to use it. It involves disputes about an injury or sickness that the customer alleges was the fault of the company (or one of their suppliers if they were on a package holiday).
Personal injury claims have not previously been covered by ABTA’s current ADR scheme, also adminstered by CEDR, which has been resolving customer complaints for over 40 years.