Insurance

Non-medical life insurance assumes a no medical test while issuing a policy, as opposed to a traditional policy where medical tests are required and are executed while relying upon the declaration, which the insured makes at the time of making of the contract of insurance.

Respondents were legal heirs of employee who died when he met with an accident, and were duly paid amount under group life insurance

Respondents had contended that they were also entitled to accidental death benefit; and their constitutional petition in such regard was allowed

Contention of the appellants was inter alia, that at the time of death, the Life Insurance Policy did not cover accidental death benefit

Validity

Accidental death benefit was only available under the group life insurance policy issued by State Life Insurance Corporation of Pakistan, for the year 2008-09; which expired on 31-5-2009 and when the said group insurance policy was renewed, it only provided for one benefit, namely insurance claim, which was duly paid to the deceased

Group life insurance policy covering the period during which the deceased died, did not provide for accidental death benefit

Impugned order was, therefore, not sustainable in the eye of the law and was set aside.

Respondents were legal heirs of employee who died when he met with an accident, and were duly paid amount under group life insurance

Respondents had contended that they were also entitled to accidental death benefit; and their Constitutional petition in such regard was allowed

Contention of the appellants was inter alia, that at the time of death, the Life Insurance Policy did not cover accidental death benefit

Validity

Accidental death benefit was only available under the group life insurance policy issued by State Life Insurance Corporation of Pakistan, for the year 2008-09; which expired on 31-5-2009 and when the said group insurance policy was renewed, it only provided for one benefit, namely insurance claim, which was duly paid to the deceased

Group life insurance policy covering the period during which the deceased died, did not provide for accidental death benefit

Impugned order was, therefore, not sustainable in the eye of the law and was set aside.

Company in its statement of assets for solvency purposes, had included the deposits received as security against guarantees as admissible assets in violation of S.32(2)(k) of Insurance Ordinance, 2000

Directors of the company, in addition to the day to day running of the company, and the management of its business, also had some 'fiduciary' duties i.e., duties held in trust and some wider duties imposed by statute; and breach of those statutory duties, would be a higher standard of accountability which required them to be vigilant and perform their duties with due care

Directors, in the present case, had failed to perform their duties with due care and prudence

Directors were supposed to be well aware of their legal obligations as required by the Insurance Ordinance, 2000 under S.32(3), and were required to ensure compliance with the clear wordings of S.32(2) of Insurance Ordinance, 2000

Legitimate inference was that the default was committed

Commission in exercise of powers conferred under S.156 of Insurance Ordinance, 2000 instead of imposing the maximum penalty, imposed a nominal fine of Rupees one hundred thousand only

Company was issued a stern warning that in case of similar non-compliance in future, strong action would be taken against it.

Court is obliged to look after and protect interests of a minor on its own.

Court is obliged to look after and protect interests of a minor, on its own.

Ordinarily once insurance policy was issued, claim was processed and cheque was issued, then matter would become a fait accompli.

Ordinarily once insurance policy was issued, claim was processed and cheque was issued, then matter would become a fait accompli.

Scope.

Plea of Insurance company was that as per Cl. (5) of Insurance Policy, no written request for converting insurance policy into a paid-up policy was made by insured, thus, his policy had lapsed automatically

Trial Court dismissed suit, but Appellate Court decreed the same

Validity

Clause (5) of Insurance Policy revealed that condition of written request was not mandatory as no penal consequences were prescribed therefore

Contract between parties, thus, could not become void

Appellate Court had passed impugned judgment after applying its independent mind and properly appreciating evidence

Insurance Company had failed to point out any non-reading or misreading of evidence by Appellate Court or violation of principle laid down by superior Courts

High Court dismissed petition in circumstances.

Dispute was raised by the Insurance Company regarding medical certificate submitted by the deceased at the time of getting insurance policy

.-Defendant company refused to pay the amount of policy for the reason that the deceased was suffering from tuberculosis and the medical certificate submitted was fake

Plaintiff proved that the deceased was not suffering from any disease at the time of obtaining policy and he died as a result of heart attack

Deceased had not committed any fraud with the, company at the time of obtaining the policy

Findings of Lower Appellate Court were not sustainable

Judgment and decree of Lower Appellate Court were set aside and that of the Trial Court was restored.

Widow and the children of the deceased filed suit against the employer challenging release of such money to the mother without the consent of the widow

Trial Court decreed the suit in favour of the widow

Contention by the employer was that the payment was made in accordance with the Service Rules applicable to deceased employee and employer had committed no illegality

Validity

Employer had not acted negligently or imprudently and had made the payment in accordance with the Service Rules/Regulations as the deceased had nominated his mother to receive the amount

Trial Court had wrongly found the employer to be jointly and severally liable for payment of the shares to the widow and children of the deceased

Responsibility of such payment was solely on the mother of the deceased provided that the entire amount or some of the amount formed the estate/Tarka of the deceased

Judgment and decree of the Trial Court was set aside in circumstances

[Rukia and another v. Ghulam Shah and another PLD 1994 Pesh. 1 dissented from].

Measure of indemnity in respect of claims for unrepaired damage to a ship caused by a peril insured against a Marine Hull Policy of Insurance

Law to be followed in determining issues of marine insurance in general and the issue of unrepaired damages in particular

Insurance Policy postulated that insurance was subject to Bangladesh law and practice and in absence of the same English law and practice

No law on marine insurance existed in the statute book of Bangladesh

Effect

Held, in such a situation English law and practice will be applied for under private international law, the parties had the liberty to choose the law under which their contract will be governed

English Marine Insurance Act, 1906, S.69(3) as modified by Institute Time Clauses (Hull) Cl.(IB)

[Private International Law.].

Insurable interest could also be founded on contract.

Where the Insurance company had accepted the interest of insured by sending them the Claim Form the insured had the insurable interest.

Miscellaneous application calling upon Supreme Court to (i) clarify the full and correct implication of its judgment; (ii) proceed in contempt against those alleged to have deliberately misinterpreted Supreme Court judgment to derive political advantage out of it and (iii) to end the alleged legal chaos and constitutional crisis into which the country allegedly had been plunged

Supreme Court, holding petitioner to have locus standi in the matter, issued notice only in respect of matter seeking clarification of the judgment and not in other ones and observed that judgment, in question maintained and upheld the judgment of High Court and did nothing more than record additional grounds and reasons therefore

Press Note issued by the Federal Government did not appear 1o, correctly reflect the judgment so far as it stated the consequences of the judgment

Findings recorded by the High Court and affirmed by Supreme Court relatable to the r

Covenants??Construction of conditions used in Insurance Policies?"Condition precedent" and "condition subsequent"??Distinction.

Once an insured proves the factum that the loss is occasioned on account of risk covered by the Insurance Policy, the burden is shifted on the Insurance Company to prove that the case was covered by an exception provided in the Insurance Policy or that there was a breach of condition on the part of the insured as to disentitle him to lodge a claim under the Insurance Policy- -Question of burden of proof, however, depends on the facts of each case

When the onus of proof is not discharged the party on whom it lies fails.

Deceased at time of air crash a supernumerary Chief Flight Engineer and his name not shown on list of passengers but coming under category of crew and no ticket, issued to him-Extra insurance under supplementary double indemnity contract creating liability for company only if any member of crew, already insured taking flight not as crew or supernumerary crew but as passenger-Fact that certain duties allocated to members of crew during _flight and they were to relax during certain periods, held. would not change their status as members of crew when temporarily off duty during same flight.

Contract-Deliberate concealment of information in proposal form-Held, a ground for avoiding contract of insurance.-[Contract].

Carriage of goods by sea-Loss of goods-Insurer substantially realising damages from Insurance Company-Notwithstanding, suit of Insurer against carrier for damages, held, maintainable (for benefit of Insurance Company)-Transfer of Property Act (IV of 1882), S. 135-A.-[Carriage of goods by sea].

Insurance of goods-"Riot and strike endorsement" in policy stipulating "this insurance does not cover any loss or damage resulting from . . . . . . any activity directed towards overthrow, by force, of the Government"-Insurance in respect of goods lying at godown of plaintiff in Dacca-Goods looted by mob in or about 27-11-71-Held, Court could take judicial notice of conditions prevailing in East Pakistan at the time and of damage complained of being due to civil commotion and serious disturbances, making the case fall squarely within the exception laid down in the policy.

Insurance -Policy covering risk of loss or damage to consignment of goods during transit by Rail-Such contract of insurance, held, essentially a contract of indemnity and actual loss to be compensated.

Insurer entitled to repudiate liability under insurance contract if such circumstances kept back by insured - Uberrima fides, requirement of.

Insurance Insurance-Motor insurance-Policy of insurance of motor vehicle to be construed against insurer-Courts to lean in favour of insured in case of ambiguous expressions in policyWarranty (conditions of policy), breach of-Onus to prove upon insurer-Condition in motor insurance policy, "the insured shall take all reasonable steps to safeguard the motor vehicle from loss or damage and to maintain it in efficient condition Motor bus meeting accident-Report of Motor Vehicle Inspector after accident indicating that its hand brakes were defective

Insured, responsible only to ensure, so far as sight and prevision would allow, that motor vehicle remained in efficient condition-Insurer, to prove that motor vehicle was driven in inefficient condition to insured's knowledge at time of accident Insurer failing to show that insured or his driver had pre-knowledge of defective condition of brakes-Insured, held, not in breach of conditions of insurance policy.

Conditions in such policy should be construed against insurers and in case of ambiguous expressions Court should lean in favour of insured

Breach of condition-Burden of proof lies upon insurer.

Insurance Insurance-(Marine insurance)-Company liable for loss if goods have been proved to have left warehouse and put on board ship-"Very slight" evidence required to prove shipment-Insurance company's own subsequent declaration that policy covered also risks incurred during transshipment, considered enough evidence of shipment:-[Jhoason v. Ward 170 E R 826 Home Insurance Co. v. Ramnath & Co. A I R- 1955 Mad. 602; British and Foreign Marine Insurance Co. Ltd. v. Gaunt 1921 A C 41 ref., M'Andrew v. Bell 170 E R 389; Gibbon v. Featherstonhaugh 171E R 455 and Arnould on Marine Insurance Vol. 10, para. 1267, p. 1244, considered.]

Insurance Insurance-Suit by importer of goods for damages for short delivery against carriers, their agent and insurer-Insurer can re-imburse himself either by instituting a separate suit or by taking "third party" proceedings in plaintiff's suit-Insurer's having made a claim in his written statement for an "alternate decree". In his favour, not enough.

Ss. 3 & 31-Insurance-Life-insurance-Contents of proposal form, and declaration made before medical examiner, becoming untrue by date proposal accepted-Insurance Company accepting proposal and issuing policy on condition that person insured had riot in mean time suffered any injury or illness-Insured, sustaining injury in accident prior to acceptance-Fact, however, not disclosed to Company and insured dying soon thereafter Failure to disclose, held, absolved Company from all liability under policy.

Third party risk-Insurer Company not liable, to such party.

Insurance Insurance-Demand for insurance of lives of workers Rejected.

Not necessarily the last in time but what is substantially the cause determined on common sense principles.