£3m blaze insurance claim refused

A LEADING Oldham businessman whose home was gutted by fire is facing financial catastrophe after a judge ruled his desperation for an insurance payout had driven him to lie in court.

Builder and surveyor Alan Bate (69) owned the Long House in Dobcross, built for a wealthy mill owner at the height of the Victorian era.

In June, 2006 fire all-but destroyed the house, which was surrounded by outhouses including a stable block and coach house.

Mr Bate claimed almost £3 million from Aviva Insurance UK Limited, including £1.2 million rebuilding costs, £115,000 for contents and damages for “distress and inconvenience”.

Aviva refused payment, insisting there was misrepresentation on the application form and failure to disclose essential facts.

Judge David Mackie upheld the insurance company’s refusal, ruling the businessman knowingly lied in court in his desperation to stave-off ruin.

His counsel told the judge the fire was a personal catastrophe for Mr Bate. Attempts to turn it into units and sell it on failed and the property had been repossessed, leaving him heavily in debt.

Judge Mackie said the insurance proposal form had given a false picture of an incident in 2004 in which £50,000 damage was caused to the Long House when a builder cut through a power cable.

He had also failed to disclose that businesses were operating on the estate and that the house was undergoing commercial development.

He described one aspect of Mr Bate’s evidence as “utterly implausible” and said he had knowingly lied in sworn evidence.

The judge ruled that Aviva was entitled to “avoid” Mr Bate’s policy.