CHAN HUNG-WING AND ANOTHER v. LAM KAM-CHING AND OTHERS

CHAN HUNG-WING AND ANOTHER v. LAM KAM-CHING AND OTHERS

The court held the insurer liable to indemnify because the vehicle was being used in connection with the insured's business as defined by the policy; the policy did not require exclusive use by the insured, so the concurrent benefit to the driver's own business did not take the use outside the policy cover and s.10(1) therefore required payment.

Citation
CHAN HUNG-WING AND ANOTHER v. LAM KAM-CHING AND OTHERS
Parties
Plaintiffs: CHAN Hung-wing and CHEUNG Cho-lan as administrators of the estate of CHEUNG Kit-yu, deceased; 1st Defendant: LAM Kan-ching; 2nd Defendant: CHUNG Che alias CHUNG Chi; 3rd Party/insurer: Granite State Insurance Co.
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
1 June 1977
Case Number
HCA1930/1973
Procedural Posture
Tort (fatal Accident) With Third Party Indemnity/insurance Claim / Judgment (third Party Indemnity Proceedings)
Outcome
Court held Granite State Insurance Co. (3rd Party) liable under the policy to indemnify the plaintiffs and defendants in respect of the judgment against the 1st and 2nd defendants.
Legal Topics
Indemnity, Policy Coverage, Limitation as to Use, Vicarious Liability, Statutory Third‑party Recovery (s.10(1))
Source Language
EN
Insurance Law Tort Motor Vehicles Law Contract Interpretation Indemnity Policy Coverage Limitation as to Use Vicarious Liability +1 more

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Parties

CHAN Hung-wing and CHEUNG Cho-lan as administrators of the estate of CHEUNG Kit-yu, deceased

Plaintiffs

LAM Kan-ching

1st Defendant

CHUNG Che alias CHUNG Chi

2nd Defendant

Granite State Insurance Co.

3rd Party/insurer

Procedural Posture

Tort (fatal Accident) With Third Party Indemnity/insurance Claim / Judgment (third Party Indemnity Proceedings)

Legal Issues

  1. 1 Whether the insurer (3rd Party) is liable under the policy to indemnify plaintiffs and defendants for the judgment obtained against the insured and driver
  2. 2 Whether the vehicle use at the time of the accident fell within the policy limitation 'Use in connection with the Insured's business' when it also benefitted the driver's own business
  3. 3 Whether s.10(1) of the Motor Vehicles Insurance (Third Party Risks) Ordinance requires payment despite insurer's denial/cancellation rights

Ratio Decidendi

The court held the insurer liable to indemnify because the vehicle was being used in connection with the insured's business as defined by the policy; the policy did not require exclusive use by the insured, so the concurrent benefit to the driver's own business did not take the use outside the policy cover and s.10(1) therefore required payment.

Court Disposition

Court held Granite State Insurance Co. (3rd Party) liable under the policy to indemnify the plaintiffs and defendants in respect of the judgment against the 1st and 2nd defendants.

Orders

  • 3rd Party (Granite State Insurance Co.) liable to indemnify plaintiffs and defendants in respect of the judgment awarded against the 1st and 2nd defendants in the sum of 182662.40 with interest and costs