INSURANCE REFUNDS

Greymouth Evening Star, 22 July 1927, Page 5

INSURANCE REFUNDS

IMPORTANT TEST CASE PROBLEM FOR JUDGE (Per Press Association.) CHRISTCHURCH, July 22. Arising out of keen competition in the 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 Rudkin, Ltd. (Air Donnelly) and the defendant firm was the Yorkshire Insurance Company, Ltd. (Air Thomas). The statement of .claim set out that, plaintiff claimed the sum of £69 3s Id, being balance of refund due and payable by the defendant to plaintiff in respect of policies taken out with the defendant company and afterwards cancelled, pursuant to clause in the policies. Air Donnelly said that it was a test case brought against the defendant company, to decide a very narrow question of the construction of a clause in an insurance policy. All the facts were admitted. Under the clause, the plaintiff was entitled to cancel his insurance policy, in which case he was entitled to a certain refund of premium, according to the rate ruling. The whole controversy was that at the time the policy was issued, the rate was a certain amount, but just before cancellation was altered by the company. The question for the Court to decide was whether the plaintiff was entitled to the rate ruling at the time the policy was issued, or the rate ruling at the date of cancellation. 1 His Honor reserved his decision.