Independent Insurance's 2000 accounts were fraudulent, Class Law partner Stephen Alexander told the Insurance Times broker briefing this afternoon.
Alexander addressed the briefing, attended by more than 150 brokers, along with Pricewaterhousecoopers liquidators Mark Batten and Dan Schwarzmann, Premium Credit managing director Graham Puttergill, Creditors of Independent Insurance Group (CIIG) chairman Kevin Young and Brent North MP Barry Gardiner.
Alexander said fraud was the most important word to remember when dealing with Independent.
“People have been reluctant to use it but we're not, based on the evidence we've gathered,” he said.
“We've been advised by employees that they were given figures they could use as reserves each month and, once that was exceeded, claims were to be put down for £1 or not at all.”
He said Class Law was helping the Serious Fraud Office in its inquiries into Independent's collapse.
Alexander said the existence of fraud had a huge impact on policyholders' legal positions.
“Fraud basically cancels many contracts and it's important people know what their true legal position is,” he said.
Meanwhile, Puttergill angrily rejected Alexander's suggestion, made earlier this week, that policyholders who paid through Premium Credit take part in a test case to hold the finance company jointly liable for their losses.
Alexander said they could be held liable under Section 75 of the Consumer Cred
