Collateral lies need not invalidate insurance claims, court rules

Supreme court says lies that do no affect overall value of a claim are irrelevant and cannot be used by insurers as a reason to reject it

A supreme court ruling could prompt a wave of fraudulent claims on household and car policies after it ruled it was acceptable to tell a “collateral lie” when making a claim.

Until now, insurers could reject any claim in its entirety if they found evidence of lies – such as a motorist claiming to be a librarian rather than a sportsman to keep their premiums low.

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