Insurance Fraud in UK Law

Leading Cases
  • Axa General Insurance Ltd v Gottlieb
    • Court of Appeal (Civil Division)
    • 11 February 2005

    So the effect of a fraudulent claim is retrospectively to remove or bar the insured's pre-existing cause of action: see paragraph 23(i) above. The question on Mr and Mrs Gottlieb's appeal is whether it makes all the difference if the sum happens to have been received before the fraud is even committed. If it had not been received, but was merely outstanding, then it would be forfeit.

    This invites the question why we should in any way reduce the severity of a rule which is deliberately designed to operate in a draconian and deterrent fashion.

  • Bell v Lever Bros Ltd
    • House of Lords
    • 15 December 1931

    There are certain contracts expressed by the law to be contracts of the utmost good faith where material facts must be disclosed; if not the contract is voidable. Apart from special fiduciary relationships contracts for partnership and contracts of insurance are the leading instances. In such cases the duty does not arise out of contract; the duty of a person proposing an insurance arises before a contract is made; so of an intending partner.

  • Liverpool Victoria Insurance Company v Samina Bashir (First Defendant) Faisal Rauf (Second Defendant) Kaneez Akhtar (Third Defendant) Mohammed Bashir (Fourth Defendant) Kamran Khan (Fifth Defendant)
    • Queen's Bench Division (Administrative Court)
    • 28 February 2012

    The diligence of the insurers in this case is to be highly commended. We were told that until relatively recently the police have not had the resources to investigate this type of fraud. At the beginning of this year the City of London Police have been funded by the insurance industry to set up a motor insurance and insurance fraud enforcement department which has the capacity to deal with 100 cases per month. As was said by counsel for the insurers today, that is the tip of the iceberg.

  • Aspen Underwriting Ltd and Ors v Credit Europe Bank NV
    • Supreme Court
    • 01 April 2020

    Fifthly, and in any event, as Mr Berry submits, if “the Brogsitter test” is as Mr MacDonald Eggers characterises it and is applicable in relation to section 3, that test is met in the circumstances of this case. The Insurers' claim is that there has been an insurance fraud by the Owners and the Managers for which the Bank is vicariously liable.

  • Banque Financiere de la Cite S.A. (formerly Banque Keyser Ullmann S.A.) v Westgate Insurance Company Ltd (formerly Hodge General & Mercantile Company Ltd); Banque Keyser Ullmann S.A. v Skandia (U.K.) Insurance Company Ltd
    • Court of Appeal (Civil Division)
    • 28 July 1988

    In our judgment, the duty falling upon the insurer must at least extend to disclosing all facts known to him which are material either to the nature of the risk sought to be covered or the recoverability of a claim under the policy which a prudent insured would take into account in deciding whether or not to place the risk for which he seeks cover with that insurer.

  • Finers (A Firm) v Miro
    • Court of Appeal (Civil Division)
    • 25 July 1990

    The defendant submits through Mr. Crow that the Court has no jurisdiction to entertain the Originating Summons, because there is no relevant trust to found jurisdiction under Order 85. He urges that there is no trust, constructive or otherwise, in favour of the Liquidator or the Insurance Company yet established, or even claimed by the Liquidator.

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  • Insurance Act 2015
    • UK Non-devolved
    • January 01, 2015
    ...... . (2) Nothing in this Part affects the operation of any rule of law according to which knowledge of a fraud perpetrated by an individual ("F") either on the insured or on the insurer is not to be attributed to the insured or to the insurer (respectively), ......
  • Data Protection Act 2018
    • UK Non-devolved
    • January 01, 2018
    ...... (a) (a) is necessary for the purposes of preventing fraud or a particular kind of fraud, and . (b) (b) consists of— . (i) the ... (a) (a) is necessary for an insurance purpose, . (b) (b) is of personal data revealing racial or ethnic origin, ......
  • Corporate Insolvency and Governance Act 2020
    • UK Non-devolved
    • January 01, 2020
    ...... (b) (b) fraudulently removing any part of the company’s property to the value of £500 or ... (a) (a) paragraph 3 (insurance companies), . (b) (b) paragraph 4 (banks), . (c) (c) paragraph 5 ......
  • Financial Services Act 1986
    • UK Non-devolved
    • January 01, 1986
    ...... investment business; to make related provision with respect to insurance business and business carried on by friendly societies; to make new ...the spent conviction is for— .   . ( a . ) an offence involving fraud or other dishonesty; or. .   . ( b . ) an offence under legislation ......
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Books & Journal Articles
  • Insurance Fraud
    • Nbr. 3-2, March 1995
    • Journal of Financial Crime
    • 168-169
    There is no doubt that the cost of fraud against insurers is growing, recent estimates by the Association of British Insurers suggest that as much as £2m is lost every day to fraudsters. Fraud occu...
  • Insurance Fraud: US Initiatives
    • Nbr. 1-4, January 1994
    • Journal of Financial Crime
    • 328-336
    The petty level insurance fraud, apparently committed by ordinary members of the community, is costing insurance companies millions of pounds a year. Those losses are passed on to the consumer. So ...
  • Consumer insurance fraud in the US property‐casualty industry
    • Nbr. 15-4, October 2008
    • Journal of Financial Crime
    • 411-431
    Purpose: The purpose of this paper is to review the management of consumer insurance fraud in the US property‐casualty market, attending to definition, prevalence, insurer and regulatory responses,...
  • Insurance Fraud and the Role of the Civil Law
    • Nbr. 80-3, May 2017
    • The Modern Law Review
    Two UK Supreme Court decisions have considered insurance fraud. The first, Versloot Dredging BV v HDI‐Gerling Industries Versicherung (The DC Merwestone), concerned the use of a fraudulent device b...
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Law Firm Commentaries
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