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Fraudulent insurance claim

If an insurance claim includes a “substantial” fraudulent element, it will invalidate the entire claim and entitle the insurance company to recover all expenses laid out, even if the whole or part of the claim could have been made without fraud.

Case law:
Aviva Insurance Ltd v Brown [2011] EWHC 362 (QB):
http://www.bailii.org/ew/cases/EWHC/QB/2011/362.html
This case arose out of a claim by Mr. Brown against his insurers Aviva for repairs and losses due to house subsidence. The claim process was very protracted. Eventually the house was repaired. In the course of the claim, Mr. Brown submitted a claim for payment of rent for a house to which he wished to move during the repairs, albeit he in fact owned the house. In fact Mr.Brown did not move in to that house and the insurance company did not pay rent.
The judge found that the claim for rent in respect of that house was fraudulent. The judge applied well established English case law that the fraudulent element of Mr. Brown’s claim in effect tainted the entire claim for subsidence, thereby entitling the insurance company to reclaim the entire cost it had laid out for the subsidence.
[Text supplied by BAILII gratefully acknowledged. Crown copyright: contains public sector information licensed under the Open Government Licence v1.0; see: http://www.nationalarchives.gov.uk/doc/open-government-licence
Legaleze is solely responsible for the above summary.]

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