Reference no: EM133506040

Case Study: You are a claims handler for a household insurer, DEF Ltd. Mamit, one of your long-standing household insurance policyholders, has recently reported that a personal injury action was brought against him by a security guard employed at a local supermarket. This action resulted in an award of compensation. Mamit's insurance policy covers personal liability and he has made a claim to DEF Ltd to settle the security guard's award of compensation.

During DEF Ltd's investigation, it is established that:

• Mamit entered the local supermarket in order to steal goods.
• During the same visit, when trying to escape from the security guard, Mamit pushed a shopping trolley into the security guard causing the security guard to sustain an injury.
• The security guard's action was successful over 11 months ago.
• Mamit was convicted of a shoplifting offence just under five years ago, Mamit claims he thought the conviction was 'spent' and did not declare it to DEF Ltd previously.

DEF Ltd has declined Mamit's claim and Mamit has made a complaint concerning this declinature.

The security guard has taken every opportunity to tell the local community both verbally and through social media that Mamit is violent and a thief, and should not be employed. Mamit lost his job over the incident and is finding it difficult to find employment.

Question 1: Explain, with justification, the legal implications of Mamit's failure to disclose the shoplifting conviction to DEF Ltd. Refer to one statute in support of your explanation.

Question 2: Discuss the legal impact of Mamit's failure to contact DEF Ltd, immediately after the incident occurred.
Explain who else the security guard could have pursued in an action for their injury.

Question 3: Discuss the legal liability in respect of Mamit's loss of employment caused by the security guard's comments.