The meaning of fraud

Aviva Insurance Ltd v Brown [2011] EWHC 362 (QB) is a case in which the assured was accused of using fraudulent means and devices to obtain payment for a genuine loss. The case is an important one in that there is a discussion by Eder J of the meaning of ‘fraud’ in this context, and there is a strong argument that the case shows that the law on fraudulent claims has become unfairly balanced in favour of insurers.

Brown: the facts

Mr Brown, the assured, was the owner of 13 Friern Barnet Lane in north London. He insured the property against various perils, including subsidence, with the claimant insurers. In the event of an insured peril occurring, the policy covered rebuilding or repair costs, and also the cost of temporary accommodation and loss of rent if the premises became uninhabitable. The policy also stated that the insurers ‘will not pay any claim which is in any respect fraudulent’.