LIFE INSURANCE CLAIM

Evening Star, Issue 23100, 28 October 1938, Page 11

LIFE INSURANCE CLAIM

COMPANY REFUSES TO PAY ALLEGATION OF FRAUD (Pbb United Press Association.J CHRISTCHURCH, October 28. Claiming £2,000 as life insurance, the Perpetual Trustees, Estate, and Agency Company of New Zealand Ltd., as executors for the late Ernest Ackerman Smith, of Lincoln, proceeded agpinst the Colonial Mutual Life Assurance Society Ltd. before Mr Justice Northeroft and a jury in the Supreme Court to-day. The defendant society admitted the policy, but alleged fraud on Smithes part in obtaining it. According to the statement of claim, Smith, who died on November 2, 1937, had insured his life in March of the same year for £2,000 with the defendant company, and the policy was in force at his death. Under the terms of the policy plaintiff claimed that £2,000 was now payable, and this sum, together with interest at 8 per cent, since May 20, 1938, and costs, was claimed. Admitting that it had refused to pay the £2,000 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 written proposal and declaration and personal statement, both signed by Smith on March 3, 1937, being true and correct and no relevant information being withheld. The defendant society quoted Smith’s personal statement, which was to the effect that his health was quite good, that he had never been under medical or surgical treatment, that he was actively engaged in farm work, and that he had consulted a doctor in 1934 regarding his weight (14st), which had been reduced by dieting. These statements by Smith were, according to the insurance company’s defence, untrue, comprising positive misstatements and concealment of fact.. Such misstatements and the withholding of information were pleaded as a defence to the claim. During the years 1935, 1936, and 1937 the company declared that 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 hmmopbysis in 1936. Quoting the 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,” the defendant submitted that Smith’s misstatements and concealment of information were done knowingly, and were therefore fraudulent.