AN INSURANCE POINT

Evening Star, Issue 19615, 22 July 1927, Page 6

AN INSURANCE POINT

EEFUHD OFI CANCELLATIONS IMPGRTAMT TEST CASE [Per United Press Association.] CHRISTCHURCH, July 22. Arising out of the keen competition in insurance business at the present time a test case to obtain the decision of ..the Supreme Court on the interpretation of a clause in an insurance policy was heard before Mr Justice Sim this morning. The case is of particular interest to all insurance companies owing to the questions involved. The plaintiff firm was Lane, Walker, and Rudkin, Ltd. (Mr Donnelly), and the defendant firm was the Yorkshire insurance Company, Ltd. (Mr Thomas).

The statement of claim set out that plaintiff claimed the sum of £01) 3s Id, being the balance of a refund due and payable by the defendant to plaintiff in respect of policies taken out with the defendant company and afterwards cancelled pursuant to a clause in the policies. Mr Donnelly said that it was a test case brought against the defendant, company to decide the very narrow question of tho construction of a clause in an insurance policy. All the facts were admitted. Under the cl; use t) u plaintiff was entitled to cancel his insurance policy, in, which case ho was entitled to a certain refund of premiums, according to the rate ruling. The whole controversy was that at tho timo the policy was issued the rate was a certain amount, but just before cancellation the rate was altered by the company. The question for the court to decide was whether plaintiff was entitled to the rate ruling at tho time tho policy was issued or to tho rate ruling at the date of cancellation. His Honor reserved his decision.