IMPORTANT INSURANCE CASE.

New Zealand Herald, Volume XXV, Issue 9130, 11 August 1888, Page 5

IMPORTANT INSURANCE CASE.

[l>Y TELEGRAPH.—PRESS ASSOCIATION.] Dunedin, Friday. In the Supreme Court to-day, Mr. Justice Williams gave judgment in the case of Bowers v. The National Insurance Company, a claim on an insurance policy. The insurance was over the house and the furniture in it. The company paid the insurance on the furniture, but elected to reinstate the building. Plaintiff, however, having alienated the land, they were prevented from reinstating. The plaintiff contended that, having paid for the furniture, the company could not elect to reinstate the building. His Honor holds that if a man's house and furniture were insured, and both burnt, clearly the amount of his loss was the value of the two together ; it could never have been intended to allow the company to choose at pleasure some items, and say "These we elect to pay;" for looking at the nature of the contract, and at the fact that the condition does not clearly give the company the right to reinstate a part, they have, by paying for a part, lost the right of election to reinstate, and so they must, pay for the rest. Judgment was given for £100, with disbursements and witnesses' expenses.