Fatal exaggeration

Yagenah v Zurich Plc [2010] EWHC 1185 (QB); SJ 25 January p17

In an insurance claim the judge found that the claimant had made a dishonest claim for the contents of a property damaged by fire. The judge was influenced by a false council tax claim which he found went to more than the claimant’s credibility as a witness. It pointed to a tendency consistent with fraud. The claimant had not hesitated to be untruthful when it was in his financial interest to do so. As a consequence of the finding of fraudulent or dishonest, or both, property contents claims, the entire claim, including a claim for reinstatement of the property (notwithstanding there was no finding of arson) was dismissed. Under the common law an insured who has made a fraudulent claim may not recover even that part of the claim which could have been honestly made. Where an insured has been fraudulent or dishonest in any part of the claim the dishonesty relieves the insurer of liability entirely.