Distinguishing ‘collateral lies’ from the fraudulent claims rules in insurance contracts: the lie is dishonest but the claim is not

In Versloot Dredging BV and another v HDI Gerling Industrie Versicherung AG and others [2016] UKSC 45, handed down, last month, the Supreme Court ruled that a “collateral lie” made during the course of an insurance claim would not lead to repudiation of the claim. Lord Sumption, giving the lead judgment, used the phrase “collateral lie” to mean “…a lie which turns out when the facts are found to have no relevance to the insured’s right to recover.”