A TEST CASE

Evening Star, Issue 19617, 25 July 1927, Page 7

A TEST CASE

CASE AGAINST INSURANCE COMPANY [Tim United Press Association.] CHRISTCHURCH, July 25. Mr Justice Sim to-day gave judgment in a test case in which Lane. Walker, and Rudkin claimed £69 3s Id from the Yorkshire Insurance Company, the balance of a refund due by the defendants to plaintiffs in respect to policies taken out with dclcndants and afterwards cancelled. The case was brought against the defendants in order to obtain a ruling on a very narrow question, of the construction of a clause in the policy when tho insurance was effected. His Honor said than shortperiod rates had been fixed. The rates were altered on December 1, 1926, and plaintiffs cancelled the policies on December 17, 1926. The question was: What was meant by “ customary short period”? His Honor thought that, what was meant was the rate which was adopted by the association and which was in force when the policy w r as terminated. There was no right to have rates retained unaltered. If rates were altered the altered rates became the rates for the policy, and plaintiffs were not entitled to recover any sum from the defendants.