HFW Briefing: Supreme Court defines the ambit of the fraudulent claims rule

Claims, Insurance and Reinsurance, Legal, Marine Insurance, Maritime Fraud — By on August 5, 2016 at 10:39 AM

HFW bulletin 05 AUG 2016

Supreme Court defines the ambit of the fraudulent claims rule

The fraudulent claims rule is well established in English law. It operates to bar a policyholder’s claim in its entirety when that claim is fabricated or fraudulently exaggerated. The leading case is generally regarded as Britton v Royal insurance Co in which Willes J suggested that the rule was a manifestation of the duty of utmost good faith.

The extension of the fraudulent claims rule to include lies told in the claims process – so called “fraudulent devices” – is at common law a more recent development.

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