The driver was insured under a policy in his own name which referred to a particular vehicle, but which also provided him with third party cover when driving another motor vehicle with the owner’s consent. He disposed of his own car, but asked whether he would be covered to drive his mothers vehicle. She said that he would be. He drove, caused an accident, and became liable in damages. Each policy must be interpreted in the light of the actual words used, but the third party cover was a secondary policy which continued, and was not dependent upon his continued ownership of the nominated vehicle. There was no provision of any period in which any replacement vehicle had to be acquired and no obligation to inform the insurers of the disposal of the insured vehicle. He only had to notify the insurers of a new vehicle within seven days. To hold that the policy terminated on disposal of the vehicle unless replaced immediately by another would deprive him of cover when he might most need it. There was little ambiguity here, but the policy should be construed against the insurers.
Judges:
Mance LJ
Citations:
Times 24-Jan-2001, Gazette 25-Jan-2001, [2001] 1 Lloyd’s Rep 520
Jurisdiction:
England and Wales
Cited by:
Cited – GE Frankona Reinsurance Ltd v CMM Trust No.1400 (the ‘Newfoundland Explorer’) AdCt 22-Mar-2006
The owner sought to claim under his insurance policy. The yacht was, in the policy warranted to be fully crewed at all times. The owner had left the boat to return a few hours later when it was found on fire.
Held: The insurance claim failed. . .
Lists of cited by and citing cases may be incomplete.
Insurance, Contract
Updated: 10 May 2022; Ref: scu.80084
