Although an official figure for the commission is unknown it has been estimated at £1.5m
Insurance broker Lockton has been accused of ‘forgery’ in a bid to deceive a client and win commission from AXA.
A legal claim has been filed against the broker after it was accused of forging documents to deceive a client regarding a policy pay-out to retain its relationship with AXA Insurance UK, it is alleged.
No official figure has been stated for the commission, but it has been estimated at £1.5m.
Lawyers for British property investor Aubrey Weis claim that individuals working in the Lockton’s UK office altered an insurance certificate, two forms and an AXA email in a bid to secure ongoing commission, this is according to the Financial Times.
Lockton’s had originally been selected by Weis’s real estate group CPC to sort out insurance for its commercial properties and it provided a policy for the groups billion-pound portfolio with AXA.
CPC is now seeking a full reinstatement for the cost as well as being compensated for a breach of contract, fiduciary duties, plus exemplary damages up to the value that Lockton hoped to make.
Golden Triangle
It all started back in June 2019 when a fire damaged CPC’s Golden Triangle industrial estate situated in Widnes, Cheshire.
The group filed a claim and allege that they were assured by Lockton that it was covered. However, the claim filed in the High Court saw CPC’s lawyers argue that after AXA had questioned the level of cover Lockton had arranged, and that an “unknown employee” of the broker altered the insurance certificate in July 2019.
And this alteration reduced the insurance to an indemnity basis.
The lawyers allege that these alterations were subsequently hidden from CPC, and when the property group filed for a full settlement to cover the fire claim as a pre-condition of renewal an employee at Lockton’s forged two AXA acceptance forms in February 2020.
The acceptance form showed a settlement cost of £1.25m instead of the £541,000 including costs that AXA had apparently offered.
Meanwhile when CPC asked for the £1.25m to be paid, CPC’s lawyers allege that the same Lockton employee forged an email from AXA to confirm the payment.
A spokesperson for AXA said: “We do not comment on matters which are before the court and in which we are not involved.”
Lockton declined to comment.
CPC has also been contacted for comment.
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