In its recent decision in Abbas v. Esurance Insurance Company of Canada (Abbas), the Court of Appeal of Alberta (Court of Appeal) reaffirmed that an insurer has no obligation to indemnify an insured for any loss arising from the same event under the same insurance policy if the insured files a fraudulent proof of loss that is material to one or more parts of the claim. That is the case even if some part of the proof of loss is not tainted by fraud.
Abbas reaffirms that the common-law-fraudulent-claims rule, which has existed for 200 years, will continue to apply in Alberta, and that courts will impose harsh consequences on insureds who violate that duty of utmost good faith by filing a fraudulent proof of loss.
The insured was injured while travelling as a passenger in a vehicle driven by an uninsured driver. The insured filed a proof of loss form with the insurer, Esurance Insurance Company, for the following insurance coverage:
The insured falsified his employment status when he applied for Section B Benefits. In response, the insurer refused to cover the insured's entire claim on the basis that the false statements related to the Section B Benefits forfeited the insured's right to recover the SEF Benefits to which he otherwise would have been entitled.
The insured admitted that he was not eligible for Section B Benefits but sued the insurer for the denial of the SEF Benefits. The insurer applied for summary dismissal of the insured's claim. An applications...
Patricia White, 70, of Old Greenwich, received a nine-month prison sentence for submitting false claims for unclaimed properties to around 30 state treasuries. HARRISBURG, Pa. — Months after her br...