Brokers fear rise in premiums after “collateral lie” ruling

Brokers have warned that the recent Supreme Court ruling that insurers must still pay out claims even if the claimant has told a lie will slow down the process and hike up premiums.

The ruling in July stated that claims containing a “collateral lie” – an embellishment or a lie in respect of facts that are immaterial to the policyholder’s right to recover – will no longer be considered fraudulent.  

According to David Lamping, head of claims at Cooke & Mason, this decision will drive insurers