Robin v Guarantee Life Assurance Company Ltd. (417/82) [1984] ZASCA 72; [1984] 2 All SA 422 (A) ; 1984 (4) SA 558 (A) (30 May 1984)

Robin v Guarantee Life Assurance Company Ltd. (417/82) [1984] ZASCA 72; [1984] 2 All SA 422 (A) ; 1984 (4) SA 558 (A) (30 May 1984)

The Supreme Court of Appeal held that the conversion option clause in the original term insurance policy was clear and unambiguous. The clause required that premiums for the new policy be based solely on the attained age of the life assured at the date of conversion and the rate then in force, with no provision for additional loading on health or other grounds. The respondent, as drafter of the clause, could have expressly provided for premium loading if intended. The court rejected the respondent's argument that the clause should be interpreted to allow continuation of the health loading, finding no basis for importing a tacit term to that effect. The respondent was not entitled to...

Citation
[1984] ZASCA 72
Parties
Appellant: Mary Robin; Respondent: Guarantee Life Assurance Company Limited
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
30 May 1984
Case Number
417/82
Procedural Posture
Civil Appeal / Appeal From Dismissal of Application for Declaratory and Restitutionary Relief
Outcome
Appeal upheld; order of the court a quo set aside and substituted with declaratory and restitutionary relief in favour of the appellant.
Judges
Rabie, Kotzé, Trengove, Nicholas, Smuts
Legal Topics
Insurance Contract Interpretation, Conversion Option Clause, Premium Loading, Declaratory Relief, Restitution of Payments
Commercial and Corporate Civil Procedure Insurance Contract Interpretation Conversion Option Clause Premium Loading Declaratory Relief Restitution of Payments

Case Brief

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Parties

Mary Robin

Appellant

Guarantee Life Assurance Company Limited

Respondent

Procedural Posture

Civil Appeal / Appeal From Dismissal of Application for Declaratory and Restitutionary Relief

Legal Issues

  1. 1 Whether the respondent was entitled to include a health loading of R133,33 in the monthly premiums of the converted life insurance policy.
  2. 2 Whether the conversion option clause permitted the respondent to assess premiums on any basis other than age and rate then in force.
  3. 3 Whether a tacit term could be imported to allow premium loading on health grounds.

Ratio Decidendi

The Supreme Court of Appeal held that the conversion option clause in the original term insurance policy was clear and unambiguous. The clause required that premiums for the new policy be based solely on the attained age of the life assured at the date of conversion and the rate then in force, with no provision for additional loading on health or other grounds. The respondent, as drafter of the clause, could have expressly provided for premium loading if intended. The court rejected the respondent's argument that the clause should be interpreted to allow continuation of the health loading, finding no basis for importing a tacit term to that effect. The respondent was not entitled to...

Court Disposition

Appeal upheld; order of the court a quo set aside and substituted with declaratory and restitutionary relief in favour of the appellant.

Orders

  • The appeal is upheld with costs.
  • The respondent was not entitled to include a loading of R133,33 in monthly premiums payable in respect of policy no. 451060 issued over the life of Wilfred Robin in consequence of the exercise by the applicant of her option under the conversion clause in policy no. 67241.