The Presumption of Honesty Should Prevail
Surely, the presumption of honesty should prevail until there are sound grounds for suspecting otherwise and even then there is good reason to treat a customer fairly and with due respect until there is evidence to the contrary that would be relied upon in a court of law.
In our experience, many of the problems encountered with disputes about insurance claims stem from a policyholder’s genuine mis-apprehension as to how insurance works and what is a reasonable expectation and entitlement in the event of a claim. This is not explained to them at the time of a sale of the product and so at the time of a claim it comes as a big shock to most policyholders. However correct the legal / technical explanation given after the event it does not persuade the disappointed policyholder to trust the industry.
Most insurance professionals would prefer to be liked and trusted by their clients and so every effort to engender that trust is worthwhile, both for themselves and for the industry.