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You are a claims handler for an insurer. A policyholder of the insurer, owns and operates a bus company and has made a claim relating

You are a claims handler for an insurer. A policyholder of the insurer, owns and operates a bus company and has made a claim relating to the following: A bus crashed into a low bridge causing severe structural damage to the bridge. The driver of the bus suffered minor injuries and made a claim against the bus company for their injuries but later exaggerated them to take several months off work. A child was injured when they stepped off the bus and ran into the path of passing vehicles. The injured child was taken to hospital where they received poor medical treatment, which resulted in the child having a limb amputated. An investigation into the accident found that the bus driver followed a traffic sign that diverted the bus on to a route, which led to the low bridge. Negligence, on the part of those responsible for the diversion, has been admitted.

(a) Identify, with justification, the legal doctrine applicable to the claim in respect of the damage caused to the bridge. (3)

(b) Explain, with justification, the effect of the bus driver's exaggeration of their injuries on his claim. (7)

(c) Discuss the legal issues relating to the claim in respect of the child's injuries. Refer to one case in support of your discussion.

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