Dodgy Insurance Claim Costs Company Dear

Posted: 15th July 2011

Gilding the lily when making insurance claims
Fire Station sign
is a not uncommon, but dangerous, practice as a company whose premises were damaged by fire found out.
When making its claim to the insurer, the company produced what was said to be an invoice relating to the property. However, the invoice total was actually a valuation of the property, which had been used to support the loan under which it had been purchased. This was then pressed into ‘double service’ to substantiate the claim.
The insured did not disclose this to the insurer. The Court of Appeal took a very dim view of this indeed and concluded that the deceit was sufficient to absolve the insurer from any liability at all under the policy, even though a proportion of the claim was genuine.