Flashcards in 10: Making the claim Deck (3)
Privy Council in Siu v. Eastern Insurance Ltd. (1994)
(Agency, Who Can Claim on an Insurance Policy?)
- marine policy is taken out by a firm of shipping agents (in their name)
- they had been instructed to insure the liability of the ship-owners, but the owners name did not appear on the policy.
- no indication that the shipping agents were insuring on the owners; behalf and not in their own right.
- court held that the shipowners were parties to the contract and could enforce it.
AMBIGUITY: CONTRA PROFERENTUM RULE
Houghton v. Trafalgar Insurance Co. Ltd. (1954)
(Common law rules for the interpretation of insurance policies, Construction of insurance policies)
- exception in a motor policy
- cover would not apply when the vehicle was 'conveying any load in excess of that for which it was construed'
- insurers argued against 6 passengers in the insured vehicle (designed for 5) - exception operated loss not covered.
- however, court accepted opposite interpretation, that the clause operated only where weight was exceeded, which had not happened.