collateral daMAGE

Insurance premiums set to rocket after judge rules it’s OK to LIE on your claims

After an epic legal battle judge ruled a 'collateral lie' was no reason not to pay out

TOP judges have deemed it OK to lie when making insurance claims — in a ruling poised to send premiums soaring.

The shock judgement was made at the Supreme Court in a row over a ship but it will affect policies covering cars, homes and even phones.

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Top judges say it is OK to lie on insurance claims once you are not trying to gain more than you are entitled toCredit: Alamy

The Dutch cargo vessel’s insurers vetoed a £2.4million payout because the crew told fibs about how its engine room came to be flooded.

After an epic legal battle the UK’s top court decreed the lie was no reason not to stump up.

Lord Clarke, one of the Supreme Court judges, said: “In the case of a collateral lie, the insured is trying to obtain no more than the law regards as his entitlement.”

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Legal experts said it means insurance giants can no longer dodge paying out by scouring claims for piffling discrepancies.

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