CORAM
ALEXANDER, CHIEF JUSTICE OF NIGERIA
SOWEMIMO, JUSTICE, SUPREME COURT
IDIGBE, JUSTICE, SUPREME COURT
OBASEKI, JUSTICE, SUPREME COURT
PARTIES
ROYAL EXCHANGE ASSURANCE (NIG.) LTD APPELLANTS
RESPONDENTS
AREA(S) OF LAW
SUMMARY OF FACTS
The appellant comprehensively insured his vehicle with the respondents. The insurance policy contained questions which were answered by the appellant. This formed the basis of their insurance contract.
HELD
The court held that answers given by the appellant were undertakings in the contract and formed the basic fundamental terms of the contract insurance.
ISSUES
Whether a proposal and a policy in an insurance contract can form the basis of contract in insurance.
RATIONES DECIDENDI
PROPOSAL AND A POLICY IN AN INSURANCE CONTRACT
“Where a proposal is made the basis of contract insurance, any mis-statement in it, whether material or not is ground on which the insurer may avoid liability under the policy and it is good and valid defence to an action for indemnity by the policy holder” PER D.A.R. ALEXANDER CJN
CASES CITED
DAWSONS LTD V. BONNIN & ORS (1922) 2 AC 413
ZURICH GENERAL ACCIDENT & LIABILITY INSURANCE CO. LTD. V. MORRISON (1942)2 K.B. 53
RE ARBITRATION BETWEEN BRADLEY AND ESSEX AND SUFOLK ACCIDENT INDMNITY SOCIETY LTD.(1911) 105 LT 919
BOND AIR SERVICES LTD. V. HILL (1955)2 ALL E.R 476
ALLEN V. ROBLES (1969) 2 LLOYDS REP 61
STATUTES REFERRED TO