INSURANCE CASE

Ashburton Guardian, Volume 59, Issue 15, 28 October 1938, Page 5

INSURANCE CASE

CLAIM FOR £2OOO MADE. A QUESTION OF STATEMENTS. HEALTH OF THE ASSURED MAN. (Per Press Association.) CHRISTCHURCH, This Day. Claiming £2OOO life insurance, the Perpetual Trustees Estate and Agency Company of Ncav Zealand, Ltd., as executors for the late Ernest Ackerman Smith, of Lincoln, proceeded, against the Colonial Mutual Life Assurance Society-, Ltd., before Mr Justice Northcroft and a jury in the Supreme Court to-day.

Defendant society admitted the policy but alleged' fraud on Smith’s part in obtaining it.

According to the statement of claim, Smith, Avho died on. November 2, 1937, had insured his life in March of the same year for £2OOO with defendant company, and -the policy Was in force at .his death. Under the terms of the policy plaintiff claimed that £2OOO was now payable and this sum, together with interest at,B per cent, since May 20, 1938, and costs, was claimed.

Admitting that it had refused to pay £2OOO or any part of it, the Colonial Mutual Life Assurance Society, in its statement of defence, declared that any policy on Smith’s life was issued subject to the Avritten proposal and declaration and personal statement, both signed by Smith on March 3, 1937, being true and correct, no relevant information being Avithheld. Defendant society quoted Smith’s personal statement, which Avas to the effect -that his health AA r as quite good, that- he had never been under medical or surgical treatment, that he Avas actively engaged in farm Avork, and that he had consulted a doctor in 1934 regarding his Aveight (14st), which had been reduced by dieting. These statements by Smith were, according to the insurance company’s defence, untrue, comprising positive mis-statements and concealment of fact. Such mis-statements and withholding of information Avere pleaded as a defence to the claim. During the years 1935, 1936 and 1937, the company declared, Smith had been under fairly frequent medical attention, suffering from heart-disease, blood pressure and nephritis. He had a stroke in 1935 and suffered from haemophysis in 1936.

Quoting a clause from the policy that “if the assurance hereby granted shall have been obtained through any fraudulent misrepresentation or concealment, this policy shall be void and all moneys paid in respect of it shall be forfeited to the society,” defendant submitted that Smith’s mis-statements and concealment of information were done knowingly and were therefore. fraudulent. , The bearing is proceeding.