Insurance Claims: Legitimate Investigations Or Rogue Practices?

It is a common perception that insurers can be quick to decline cover. Recent publicity of an overly keen loss adjuster will only add fuel to that jaundiced view of insurers' approach to their legal and regulatory obligations.

A loss adjuster, acting for his insurer clients, illegally obtained financial information to ascertain whether the insured had the funds to bring legal action if cover was denied.

Earlier this year record fines of more than £150,000 overall were imposed under the Data Protection Act 1998 on loss adjuster Woodgate and Clark, an ex-director, another senior employee, and 2 private detectives who were hired by the loss adjusters. They all illegally obtained the private banking records of an individual they were investigating. They obtained details of a mortgage, account balances and loans from Natwest and Abbey National in 2005 for an insured whose night club had burned down in 2004.