REINSURANCE CLAIM.

Dominion, Volume 5, Issue 1259, 14 October 1911, Page 5

REINSURANCE CLAIM.

INTERESTING POINT RAISED. By Teleßraph—Press Association—Oopyriebt (Rec. October 13, 9.25 p.m.) Melbourne, October 13. The Full Court has reversed tho Chief Justice's finding in a reinsurance claim made by the National Mutual Life Association against the Australian Widows' Fund Life Assurance Society. Tho National Mutual Association had insured a man for ,£SOOO, and reinsured him' with tho Australian Widows' Society. The man died and tho National Mutual paid the claim, and demanded from tho Australian Widows' Society tho amount of the reinsurance. Tho latter refused to pay on the ground that the insured man's declaration contained false statements. The Chief Justice found that though some of the statements wero false, tho National Mutual Association acted reasonably and honestly in tho exercise of its discretion in paying tho claim. At the same time his Honour entered judgment for tho Australian Widows' Society with costs. Tho National Mutual Association appealed, and tho Full Court has now set aside tho Chief Justice's finding and entered judgment for tho National Mutual Association for the full amount of £5000 with interest at tho rate of 4 per cent, and costs.

In this case tho claim was for JESOOO, tho amount of a policy of reinsurance on the life of the late Patrick Moran, of Wagga, grazier and storekeeper. Moran died early in 1910, and thero were on his life very many heavy policies of insurance. The National Mutual settled the particular policy in dispute, but tho Widows' Fund declined to reimburso it, alleging that Moran had been guilty of misrepresentations as (o the state of his health. The jury found, in effect, that there had been misrepresentations as to the state of his health by the insured, but they also found that tho National Mutual, in making the settlement as it did, acted in good faith on tho information before it. Tho Chief Justice said he thought the findings of the jury were such as entitled the defendant to judgment. If thero had been deception tho Widows' i'iind was entitled to ta,ko advantage rf it at any stage.