Zurich in landmark court battle to set new fraud benchmark

Zurich is on the cusp of a landmark court case which it hopes will cut out rising third-party liability fraud.

Zurich and law firm Berrymans Lace Mawer are preparing for a hearing at the Supreme Court next week over a disputed £838,000 claim which the insurer believes contains fraud.

If the court rules in Zurich’s favour, it could set a precedent so other insurers can stop paying out on third-party claims with fraudulent elements by throwing these cases out.

Current case law requires insurers to pay out for the genuine parts of liability claims even if fraud is proven.

Zurich not only wants the court to disallow the allegedly fraudulent aspects of this claim but to go further and strike out the rest of the claim too, setting a precedent.

The claim was originally brought in May 2005 by Shaun Summers, who suffered leg and wrist injuries after falling off a forklift truck. Summers claimed the injuries were so severe that he could not return to work.

Zurich casualty claims director, UK claims John Latter said: “From our point of view we think this is a case important to the industry, not just to Zurich. It has far-reaching ramifications across the industry.

“It will create a new precedent for the industry in the way we deal with claims if they have a fraudulent element.” Case continues.