Page 156 - Bundle for MF Final

Bates no 155

APPLICATION FOR ASSISTANCE OF A M KENZIE FRIEND
c
PART 8: DETAILED COMMENTS
other coverage - so that costs can be shared. subrogated or reclaimed. Most insist that
the total net compensation for loss of earnings is within the aggregated Ogden Tables
limits which in this case is fl.056.000 or less than £400,000 when the true residual
earnings are considered.

• Coverage may be triggered by an event (such as a specific accident) or by a
consequence (such as loss of a licence) irrespective of the event 143 •

159. In November 2016 the Claimant ceased to be employed 144 by easyJet and as a result 145
is understood to have submitted a Self-Assessment (SA) on-line tax return for 2016 in early
January 2017 146 • Under SA rules he would normally be required make a first payment on
his 2017 income. This should have included all income between April and October 2016.

160. Thus, the compensation of from easyJet. Hiscox, Cirencester Friendly, AIG, as well as
any income from car dealing should have been reported 147 to HMRC on or before 31 st
January 2017. It is not known whether the Claimant did so, although from the tax
actually paid [£775.00] it appears unlikely. He should also have informed Cirencester
Friendly, which would have brought his monthly benefits to an end. No evidence has
come to light that he did so.

161. The advantage of avoiding the first payment declaration in January 2017 (or
uncertainty over it) may have been another reason why the Claimant disassociated himself
from the AIG payment by transferring ownership 148 in the convoluted way he did to LPJS's
mortgage account. Simply stated, the gifting appears to have been primarily for his own
benefit to conceal excessive and duplicative claims and possibly for tax purposes.

162. The sudden rush of funds into the Claimant's Nat West bank account was unlikely to
have gone unnoticed and may have triggered a Suspicious Activity Report (SAR). This may
be another reason why the Claimant wanted to disassociate himself from and minimise his
newfound wealth by making the gift of £500,000 to LPJS.

163. The Claimant's final compensation consisted of five separate elements 149 all of which
included a recovery for the loss of future earnings. The Gourley 150 ruling means that the
aggregated compensation should not exceed the total net loss and if it does, the excess is
subject to tax. In this case, the Gourley case limit appears to be in the range of £400,000
to £500,000 against loss of earnings compensation of fl.464.458.82 plus an additional
£394,936.92 for loss of licence.

It will be interesting to see how the Claimant dealt with this on his tax returns.

143 These are not classifications typically used in Insurers, but they reflect the reality of claims settlement
144 He was self-employed trading in second-hand Land Rovers
145 As self-employed as an internet trader and car dealer
146 Possibly explaining the rush to get the £500,000 off his books before then. The date on the cancelled
cheque may have been very important to him (ie before 31 st December 2016)
147 Although much does not appear to be taxable
148 That is "gi�ing" it
149 It is not clear whether the easyJet payment was a policy of Insurance
150 The most important stated case
32 I Page