AN INSURANCE CLAIM.

Stratford Evening Post, Volume XXXI, Issue 51, 14 October 1911, Page 5

AN INSURANCE CLAIM.

JUDGEMENT OF FEDERAL HIGH COURT. Melbourne, October 13. The Full Court reversed the Chief Justice’s finding in the insurance claim. The National Mutual Life Association insured a man for £SOOO, and then reinsured with the Australian Widows’ Society. The man died, and the National paid the claim and demanded the amount from the Australian Widows’ Society. The latter refused to pay on the ground that the insured’s declaration contained false statements. The Chief Justice found that though some of the statements wore false, the National Association acted reasonably and in honest exercise of its decretion in paying the claim. At the same time he entered judgment for the Australian Widows ’Society, wit!i costs.

The National Association appealed to the Full Court to set aside the Chief Justice’s finding. This the Court did, and entered judgment for the National Mutual for £SOOO, with interest at the rate of 4 per cent., and costs.