Blow for policyholders in latest BI ruling
First High Court ruling on BI claims involving a ‘closed list’ disease clause has dismissed the claim by the policyholder and ruled in favour of the insurer.Read more
Raj Sumal, a partner in our Insurance Litigation team, has been investigating and dealing with fraudulent claims for years. He was asked by BBC Radio Derby to offer his opinion on the local court case that saw two individuals be given a 26 week suspended sentence and ordered to carry out 200 hours of community service.
The discussion was held via telephone on BBC Radio Derby at 07:10 on 06 March 2018, with Raj offering his expert insight into this and other similar cases.
Raj commented that he was glad the Court’s were taking a stern approach to any individual who seeks to bring a claim for compensation which was either false or exaggerated, with a view to receiving compensation which they would otherwise not be entitled to. However, the truth is not always hard to discover with increasing amounts of activity on social media, along with other background checks and investigations, this allows companies to gain a better understanding of the Claimant’s personality and history both during and after the alleged sickness/illness.
The discussion concluded with Raj explaining the wider impact of these false claims to the economy:
“Everything will come back around full circle because if service providers are potentially being hit in the pocket, they are going to put the price of a package holiday, especially travel insurance, if the insurers fear that they are going to have to pay out more money. I think it is a false economy to assume that it is not going to affect you and me who go on these holidays on a regular basis.”
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