An Insurance Working Example - Self-Induced Loss - Part III
If solicitors are to be instructed at an early date
, the insurer will probably have the best chance of maintaining privilege at a later date.
The involvement of the solicitor in cases of potential fraud is also critical
in that he will have the clearest view of the evidence needed to prove the
elements of fraud if the matter is litigated. It should be the solicitor who takes the statements from the witnesses, including the police, the fire brigade and any factual witnesses whether or not they have anything specific to say. In cases of fraud, memories are often refreshed at a later stage and witnesses may well remember circumstances which might dramatically differ from their earlier recollection. So many fraud cases are based upon circumstantial evidence that the tiniest change can be critical. It is imperative that the statements be signed quickly before witnesses either change their minds or leave the location.
Similarly, the forensic scientists and the loss adjusters should also be
requested to put their opinions in writing as soon as possible. The solicitor should hear the opinions orally first to enable him to assist in the structuring of the reports. In particular, the loss adjuster should leave the forensic scientist to deal with the causation of the fire and deal specifically with motivation. A thorough investigation of the company's background and financial status is imperative. Any evidence of this nature may be of vital importance in any cross-examination of the assured, particularly as to his credibility.
An Insurance Working Example - Self-Induced Loss - Part III