GUMODIN PTY LTD v TRADERS PRUDENT INSURANCE CO LTD [1990] NSWCA 81

GUMODIN PTY LTD v TRADERS PRUDENT INSURANCE CO LTD [1990] NSWCA 81

The answer in the proposal form, by omitting reference to the destruction of the trawler by fire, was not 'in every respect true and correct.' Given the declaration that answers were the basis of the contract, this permitted the insurer to avoid liability.

Parties
Appellant: Gumodin Pty Ltd; Respondent: Traders Prudent Insurance Co Ltd
Jurisdiction
Australia
Judgment Date
07 December 1990
Procedural Posture
Appeal / Judgment on Appeal
Outcome
Appeal dismissed with costs
Legal Topics
Insurance Proposal Statements, Non Disclosure, Construction of Insurance Proposals
Insurance Law Insurance Proposal Statements Non Disclosure Construction of Insurance Proposals

Case Brief

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Parties

Gumodin Pty Ltd

Appellant

Traders Prudent Insurance Co Ltd

Respondent

Procedural Posture

Appeal / Judgment on Appeal

Legal Issues

  1. 1 Whether the plaintiff made a false statement in the insurance proposal by failing to disclose destruction by fire of another property
  2. 2 Whether insurer was entitled to avoid the policy for false statement or non-disclosure

Ratio Decidendi

The answer in the proposal form, by omitting reference to the destruction of the trawler by fire, was not 'in every respect true and correct.' Given the declaration that answers were the basis of the contract, this permitted the insurer to avoid liability.

Court Disposition

Appeal dismissed with costs

Orders

  • The appeal is dismissed with costs.