Versloot Dredging BV and another v HDI Gerling Industrie Versicherung AG and others
The fraudulent claims rule does not apply to justified insurance claims supported by collateral lies that are irrelevant to the insured's entitlement; only claims that are wholly fabricated or dishonestly exaggerated are forfeited. The law does not deprive an insured of a valid claim merely because a collateral lie was told in support of it.
- Parties
- Appellants: Versloot Dredging BV and another; Respondents: HDI Gerling Industrie Versicherung AG and others
- Jurisdiction
- England and Wales
- Judgment Date
- 20 July 2016
- Procedural Posture
- Appeal / Judgment
- Outcome
- Appeal allowed
- Legal Topics
- Fraudulent Insurance Claims, Collateral Lies, Duty of Utmost Good Faith, Materiality, Remedies for Fraud
Case Brief
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Parties
Versloot Dredging BV and another
Appellants
HDI Gerling Industrie Versicherung AG and others
Respondents
Procedural Posture
Appeal / Judgment
Legal Issues
- 1 Does the fraudulent claims rule apply to justified insurance claims supported by collateral lies?
- 2 What is the proper scope of the fraudulent claims rule under English common law?
Ratio Decidendi
The fraudulent claims rule does not apply to justified insurance claims supported by collateral lies that are irrelevant to the insured's entitlement; only claims that are wholly fabricated or dishonestly exaggerated are forfeited. The law does not deprive an insured of a valid claim merely because a collateral lie was told in support of it.
Court Disposition
Appeal allowed
Orders
- Judgment entered against insurers for €3,241,310.60 and interest
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