ECJ CONCLUDES INSURERS CANNOT USE FRAUD TO JUSTIFY SERVICE PROVIDER INSURANCE POLICY PAYOUTS
March 1st, 2012
BY KEITH NUTHALL
THE EUROPEAN Court of Justice (ECJ) has concluded insurers cannot refuse to honour customer protection claims because a policy-holding service provider is guilty of fraud. This principle was established in a German case involving a package travel company. It went out of business because its owner embezzled its revenues, and so insurers argued they were not bound by insurance policies taken out to protect its customers from commercial failure. But stranded holidaymakers launched legal actions after getting home, claiming the insurers had broken ...
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