Commercial insurance fraud and dishonesty: definition, proof, fair presentation, inducement, fraudulent claims and insurer remedies under the Insurance Act 2015, and attribution across agents, assignees and co-insureds
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This Practice Note reviews the authorities on the meaning of ‘fraud’ and sets out the core principles applicable to business insureds, both when arranging insurance at inception and throughout the claims process. What amounts to fraud, and how is it established?
Fraud
There is no rigid definition of fraud in the insurance sphere. A leading statement of the test for deceit appears in Lord Herschell’s speech in Derry v Peek: first, an action for deceit requires proof of fraud; nothing less will do. Secondly, fraud is made out where a false representation is shown to have been made (i) knowingly, (ii) without any belief in its truth, or (iii) recklessly, being indifferent as to whether it is true or false. Although the second and third limbs are often described separately, the third is really an example of the second, because a person who makes a statement in such circumstances cannot genuinely believe it to be true. To avoid a false statement being characterised as fraudulent, there must always be an honest belief in its accuracy. More recent authorities have further clarified the meaning of ‘fraud’ and the principles that apply to business insureds at policy inception and during the claims process...
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Web page updated on 22/05/2026
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Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...
I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...
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