NATIONAL FARMERS' UNION MUTUAL INSURANCE SOCIETY, LTD. v. DAWSON.

(1941) 70 Ll L Rep 167

KING'S BENCH DIVISION.

Before Lord Caldecote (Lord Chief Justice).

Motor insurance-Liability of insurers to third parties-Right of recovery from assured-Accident in which insured car involved-Car driven by assured- Assured under influence of drink and incapable of having proper control of car-Payment by insurers of sum agreed in settlement of third parties' claim-Action brought to recover that sum from assured-Condition 3 of policy providing that "the insured shall keep every motor car insured by this policy in an efficient state of repair, and shall use all care and diligence to avoid accidents and to prevent loss and to employ only steady and sober drivers"-Road Traffic Act, 1934, Sect. 12: "So much of the policy as purports to restrict the insurance of the persons insured thereby by reference to . . . . (a) the age or physical or mental condition of persons driving the vehicle . . . . shall, as respects [third party] liabilities . . . . 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"-Arbitration-Finding that assured did not use all care and skill to avoid accidents-Award that insurers were entitled to recover the sum paid (1) on ground that the restriction in Condition 3 of the policy was one which by Sect. 12 of the 1934 Act was required to be omitted; (2) as damages for breach of Condition 3-Whether Condition 3 repugnant to main purpose of policy.