M'Millan v. The Accident Insurance Co., Ltd [1907] ScotLR 44_334 (02 February 1907)

M'Millan v. The Accident Insurance Co., Ltd [1907] ScotLR 44_334 (02 February 1907)

The company is absolved from liability under the policy because the proposal form, signed by the pursuer, contained a material misstatement. The pursuer is responsible for the truth of statements in the signed proposal, regardless of whether the insurer's agent filled in the form or knew the true facts, especially where the policy expressly excludes liability for agent's knowledge not communicated in writing. The agent, in filling in the form, acted as the pursuer's agent, and the pursuer's failure to read the form before signing is inexcusable negligence.

Citation
[1907] ScotLR 44_334
Parties
Pursuer: William M'Millan; Defender: The Accident Insurance Company, Limited
Jurisdiction
Scotland
Judgment Date
02 February 1907
Procedural Posture
Insurance Claim / Appeal (reclaiming Motion) From Lord Ordinary's Interlocutor
Outcome
Appeal dismissed; interlocutor of Lord Ordinary adhered to; defenders assoilzied (absolved) from conclusions of the summons.
Legal Topics
Misrepresentation in Insurance Proposals, Agency Law in Insurance, Duty to Read Signed Documents, Effect of Agent's Knowledge, Policy Conditions Excluding Agent's Knowledge
Insurance Law Contract Law Misrepresentation in Insurance Proposals Agency Law in Insurance Duty to Read Signed Documents Effect of Agent's Knowledge Policy Conditions Excluding Agent's Knowledge

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Parties

William M'Millan

Pursuer

The Accident Insurance Company, Limited

Defender

Procedural Posture

Insurance Claim / Appeal (reclaiming Motion) From Lord Ordinary's Interlocutor

Legal Issues

  1. 1 Whether an insurer is liable under a policy where the proposal form, signed by the insured, contains a material misstatement inserted by the insurer's agent, but the insured did not read the form before signing and relied on the agent's integrity.
  2. 2 Whether the knowledge of the insurer's agent of the true facts can be imputed to the insurer despite a policy clause requiring written communication to the company.

Ratio Decidendi

The company is absolved from liability under the policy because the proposal form, signed by the pursuer, contained a material misstatement. The pursuer is responsible for the truth of statements in the signed proposal, regardless of whether the insurer's agent filled in the form or knew the true facts, especially where the policy expressly excludes liability for agent's knowledge not communicated in writing. The agent, in filling in the form, acted as the pursuer's agent, and the pursuer's failure to read the form before signing is inexcusable negligence.

Court Disposition

Appeal dismissed; interlocutor of Lord Ordinary adhered to; defenders assoilzied (absolved) from conclusions of the summons.

Orders

  • Defenders assoilzied from conclusions of the summons.