Insurance: Claimants Presenting Misleading Claims In Contempt Of Court

Insurers have recently succeeded in obtaining a criminal

conviction for contempt of court against a claimant who had brought

a dishonestly exaggerated claim against one of their insureds. This

is an important decision in the fight against claimants presenting

dishonest claims in litigation. It is also another protection for

insurers against fraudulent claims on insurance policies.

In the underlying claim, the claimant sought damages for back

injuries suffered following a collision with the defendant's

vehicle. During the course of those proceedings, the claimant

verified a series of documents by signing statements of truth. The

damages claimed were in excess of £750,000. The

defendant's insurers believed that the claimant was

exaggerating the severity of her disabilities and made a payment of

£25,000 into court. They subsequently produced surveillance

footage and other evidence which showed that the claimant had

presented a clearly misleading case. The evidence contradicted the

extent of her disabilities. She also failed to acknowledge

disabilities she suffered from prior to the accident. Having been

presented with this evidence, the claimant agreed to accept the

payment into court out of time and was responsible for meeting the

costs of insurers.

The defendant's insurers then...