A Preston claims firm that encouraged holidaymakers to submit bogus insurance claims has been stripped of its licence.
Allsure Ltd, based in Winckley Court in Preston, was found to be encouraging people to lie and submit fake insurance claims for illness on holiday, according to the Ministry of Justice.
The Claims Management Regulator – part of the MoJ’s attempts to crack down on fake insurance claims – has now stripped the firm of its licence to practice.
This means that it can no longer offer regulated claims management services to new or existing clients.
Kevin Rousell, Head of the Claims Management Regulator said: “We will take firm action against claims businesses which engage in serious misconduct.
“Seeking to encourage false claims will not be tolerated.”
The investigation into the company, which calls people and encourages them to make claims, began in February.
In it, it was found that employees had been making false or unsubstantiated claims and misleading statements about the amounts due. They had also been trying to coach people into supplying the answers need to make a claim.
In July the government announced a crackdown on fake sickness claims after it was revealed that some holiday resorts had banned British tourists due to the problem of fake insurance claims.