ZURICH GENERAL ACCIDENT & LIABILITY INSURANCE CO., LTD. v. MORRISON AND OTHERS.

(1941) 71 Ll.L.Rep. 243

KING'S BENCH DIVISION.

Before Mr. Justice Atkinson.

Motor insurance - Non-disclosure - Misrepresentation-Avoidance of policy- Notice to third party-Policy taken out by M. with plaintiff company-Accident while being driven by L. with consent of M.-R. killed-Judgment recovered by R.'s widow (third party) against L. -Right to indemnity under policy- Action brought by plaintiffs against M., L. and third party for declaration that they were entitled to avoid policy on ground of misrepresentation and non-disclosure-Notice served on third party containing particulars of misrepresentation and non-disclosure - Right of plaintiffs to rely upon further particulars of non-disclosure contained in amendment to statement of claim made more than seven days after commencement of action-Evidence of previous experience of M. as driver- M. never fully licensed, holding provisional licences only, and carrying £5 excess in previous (with another company) and present policies-Facts to be proved by insurers in action for rescission-Effect of clause providing that "Nothing in this policy or in any endorsement hereon shall affect the right of any person indemnified by this policy or of any other person to recover an amount under or by virtue of the provisions of the Road Traffic Act, 1930, Sect. 38; Road Traffic Act, 1934, Sect. 10 and Sect. 12. . . ."-Whether retention of £5 excess collected by plaintiffs from M. amounted to an irrevocable election by plaintiffs recognising continued existence of policy- Road Traffic Act, 1930, Sect. 36-Road Traffic Act, 1934, Sects. 10, 12.