10
before, or within three months after, the commencement of the proceedings in which the judgment was given, he has obtained a declaration that, apart from any provision contained in the policy, he is entitled to avoid it on the ground that it was obtained by the non-disclosure of a material fact, or by a representation of fact which was false in some material particular, or, if he has avoided the policy on that ground, that he was entitled so to do apart from any provision contained in it: Provided that an insurer who has obtained such a declaration as aforesaid in an action shall not thereby become entitled to the benefit of this subsection as respects any judgment obtained in proceedings commenced before the commencement of that action, unless before or within seven days after the commencement of that action he has given notice thereof to the person who is the plaintiff in the said pro- ceedings specifying the non-disclosure or false representation on which he proposes to rely, and any person to whom notice of such an action is so given shall be entitled, if he thinks fit, to be made a party thereto.
(4) If the amount which an insurer becomes liable under this section to pay in respect of a liability of a person insured by a policy exoceds the amount for which he would, apart from the provisions of this section, be liable under the policy in respect of that liability, he shall be entitled to recover the excess from that person.
(3) In this section, the expression "material" means of such a nature as to influence the judgment of a prudent însurer in deterraining whether he will take the risk, and, if so, at what premium and on what conditions; and the expression "liability covered by the terms of the policy" means a liability which is covered by the policy or which would be so covered but for the fact that the insurer is entitled to avoid or cancel, or has avoided or cancelled, the policy.
(6) In this Ordinance, references to a certificate of insurance in any provision relating to the surrender, or the loss or destruc- tion, of a certificate of insurance shall, in relation to policies under which more than one certificate is issued, be construed as references to all the certificates, and shall, where any copy has been issued of any certificate, be construed as including a reference to that
copy.
11
11. Where a certificate of insurance has been issued under Bank- subsection (3) of section 6 in favour of the person by whom a ruptcy etc. of ingred policy has been eflected, the happening in relation to any person persons not insured by the policy of any such event as is mentioned in sub- to affect
certain section (1) or subsection (2) of section 2 of the Third Parties claims by (Rights against Insurers) Ordinance, 1951, shall, notwithstanding parties.
third anything in that Ordinance, not affect any such liability of that 24 & 25 person as is required to be covered by a policy under paragraph c. 60, a. 11. (b) of subsection (1) of section 6, but nothing in this section Ordinance shall affect any rights against the insurer conferred by that Ordin. No. ance on the person to whom the liability was incurred.
Geo. 5.
1951.
12. Where a certificate of insurance has been issued under Avoidance subsection (3) of section 6 in favour of the person by whom a restric
of policy has been effecled, so much of the policy as purports to tions on restrict the insurance of the persons insured thereby by reference policies to any of the following matters-
scope of
covering third party
(a) the age or physical or mental condition of persons driving risks.
the vehicle; or
(b) the condition of the vehicle; or
(c) the number of persons that the vehicle carries; or
(d) the weight or physical characteristics of the goods that
the vehicle carries; or
(e) the times at which or the areas within which the vehicle
is used; or
(the horsepower or value of the vehicle; or
(g) the carrying on the vehicle of any particular apparatus:
or
() the carrying on the vehicle of any particular means of identification other than any means of identification required to be carried by or under this Ordinance or by or under the Vehicle and Road Traffic Ordinance, shall, as respects such liabilities as are required to be covered by a policy under paragraph (b) of subsection (1) of section 6. be of no effect : Provided that nothing in this section shall require an insurer to pay any sum in respect of the liability of any person otherwise than in or towards the discharge of that liability, and any sum paid by an insurer in or towards the discharge of any liability of any person which is covered by the policy by virtue only of this section shall be recoverable by the insurer from that person.
of
24 & 25 Geo. 5.
2. 60, s. 12.
(Cap. 220).
19. (1) Any person against whom a claim is made in respect Duty of апу such liability as is required to be covered by a policy under person
against paragraph (b) of subsection (1) of section 6 shall, on demand by or whom on behalf of the person making the claim, state whether or not he
claims are
No comments yet.
Private notes are available after approval.