Reference no: EM133531807

Chandler Agency was retained by the solicitors for Friendly Workers Compensation Insurance Company to investigate Jarrad Hallows who as involved in a work accident on the forklift just outside the warehouse.

Jarrad was working in the warehouse as a storeman and required to use the forklift from time to time.

There have been other instances of forklift operators jumping or falling from a forklift in a tip over and being crushed between the forklift and the ground just as Jarrad has been. One death occurred as a result of these past accidents.

The company investigated all accidents and found that the proper training was provided to all employees, supervisors ensured that the forklifts were in good operational order and well maintained and suited the task required of Jarrad. Jarrad had been trained in how to use a forklift safely through a reputable RTO.

Jarrad suffered a broken arm and would be off work for 6 weeks until it healed.

Upon investigation of the accident, the Manager learned that the injury occurred when the driver's arm was outside the forklift's cage and he turned a corner too sharply. The forklift lost its footing and went over. If this was the case, then Jarrad needed some driver re-training relating to the procedures to be followed.

The Forklift was quite old and had a history of the steering jamming.

The Insurance Company wants your Agency to conduct surveillance on Jarrad during his time off work to see if you can find any evidence that Jarrad is misrepresenting or exaggerating his injuries.

His Doctor indicated the break was quite bad and Jarrad has lost 15% use of his arm.

Ray has asked you, Phil to investigate Jarrad and determine if there is any truth in his disability. You have been asked to video surveillance Jarrad, and talk to his neighbours, friends and co-workers.

He is seeking $1,000,000 claim as a result and this is a large claim for the insurance company.

Three weeks has passed, and you found nothing out of the ordinary. Then just as you were going to stop the surveillance, you saw Jarrad use his plastered arm in the front yard when he was cutting back a large tree and carrying the limbs to the tree shredder. You took video of this. His arm seemed to be working just fine now!

Then you see him discussing with his neighbour about the "lurk he is pulling with the insurance company and hopes to get $1m settlement"!

Questions:

1. Are you allowed to use a video to monitor another person in this way? Explain why.

2. What legislation covers the use of a video in this manner?

3. Has Jarrad committed an offence? If so, what offence? What legislation has been breached?

4. What would be the consequences for Jarrad?

5. What would you recommend to Friendly Insurance Company?