Leisure firm wins legal case over fraud claim

THE Malhotra Group has won a six-figure payout from a major insurer, which unsuccessfully alleged the Newcastle family firm had planned a fraudulent insurance claim.

- By COREENA FORD

Aviva Insurance Limited has this week been ordered to pay the care, leisure and property group £660,000 on account of costs, after Aviva failed in its bid to deny coverage for water damage at the New Northumbria Hotel in Newcastle.

The Jesmond hotel, which is currently closed for refurbishment, suffered water damage during the Covid-19 lockdown in July 2020, when water escaped from a cold-water storage tank.

The water flooded three storeys of the property and led to damage in six bedrooms, as well as the hotel bar and corridor areas. The hotel was closed at the time because of pandemic restrictions.