The plaintiff’s car insurance policy was for one year expiring 19th May 1929. The insured had exchanged the insured car shortly after effecting the insurance, and on 28th July 1928 he was involved in an accident in his new car. In the policy, clause A covered, firstly, ‘All sums which the assured shall become legally liable to pay [for damage] by any motor vehicle described in the schedule hereto (hereinafter called ‘the insured car’) and ‘This insurance shall cover the legal liability as aforesaid of the assured in respect of the use by the assured of any motor car (other than a hired car), provided that such car is at the time of the accident being used instead of ‘the insured car”
Held: The House recognised the principle that in case of doubt such a policy was to be construed against insurers. The case turned on the proviso, which assume[d] ‘that there is ‘the insured car’, the use of which, if an accident arises, would entitle the assured to the benefit of the policy’.
Lord Buckmaster added: ‘But if it be assumed that the original car be sold and another car taken in its place, the result would be, if the appellant’s contention were correct, that it might be possible to shift the insurance from car to car during the whole period of twelve months for which the policy runs, and that although there is no express limitation on the nature of the car that may be regarded as a substitute.’
Judges:
Lord Buckmaster
Citations:
(1931) 48 TLR 17
Jurisdiction:
England and Wales
Insurance
Updated: 30 April 2022; Ref: scu.200471