14 September 2016 / by Regulatory/ in
There are a number of types of lies:-
– White lies
– Broken promises
– Bare faced lies
In Versloot Dredging v HDI Gerling  UKSC45, the Supreme Court held the insurers of a ship could not repudiate liability on the ground that the insured had told a lie in presenting the claim, if the lie proved to be irrelevant and immaterial to the claim. The owners of the ship told the insurers untruthfully that the crew had informed them that the bilge alarm had sounded at noon, but could not be investigated because the ship was rolling in heavy weather. The vessel’s loss was found to have been caused by peril of the seas.
The lie was a “fraudulent device” rather than a fraudulent claim, namely a claim that has been fabricated or dishonestly exaggerated. It was a “collateral lie”, irrelevant and immaterial to the insured’s claim. The insurer loses nothing if it meets a liability it always had.
If you cannot tell the truth, make sure your lies are collateral lies.