Brokers fear rise in premiums after “collateral lie” ruling

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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 int