A person insured his life with an insurance company, making a declaration relative to the policy that the statements made by him in answer to the queries in the form of proposal were true, which declaration was declared to be the basis of the contract. Two of the queries were-(1) Are you temperate in your habits? (2) Have you always been so. Answers (1) Temperate; (2) Yes. The policy provided that ‘if anything averred in the declaration shall be untrue, this policy shall be void.’In an action after the death of the assured the company refused payment, on the ground that these answers were false, the truth being that the insured was intemperate. Held ( rev. judgment of Second Division) (1) that in point of fact the insured was intemperate; and (2) in point of law, that his answers to these questions formed a warranty of the truth, and having been untrue, rendered the policy void.
Citations:
[1884] UKHL 791, 21 SLR 791
Links:
Jurisdiction:
Scotland
Insurance
Updated: 30 June 2022; Ref: scu.636747