https://www.polity.org.za
Deepening Democracy through Access to Information
Home / Case Law / All Case Law RSS ← Back
Close

Email this article

separate emails by commas, maximum limit of 4 addresses

Sponsored by

Close

Embed Video

Jerrier v Outsurance Insurance Company Limited (AR 4160/2010) [2015] ZAKZPHC 34

Jerrier v Outsurance Insurance Company Limited (AR 4160/2010) [2015] ZAKZPHC 34

17th July 2015

SAVE THIS ARTICLE      EMAIL THIS ARTICLE

Font size: -+

  • Jerrier v Outsurance Insurance Company Limited (AR 4160/2010) [2015] ZAKZPHC 34
    Download
    0.54 MB
Sponsored by

1. This is an appeal against the judgment of Koen J in which he dismissed the appellant’s claim in the amount of R608 772,20 against the respondent, Outsurance Insurance Company Ltd (the insurer).  The Order of the court a quo was made only on the issue of liability as the parties agreed prior to trial on a separation of the issues of liability and quantum. The appeal centres on the consequences for an insured who fails to disclose to his insurer an incident which may give rise to a claim, even though he does not intend to lodge a claim under the contract at the time of the incident or at any time in the future.  In the context of motor vehicle insurance, does this failure to disclose an incident for which the insurer has not and will not be required to indemnify the insured for damages to his vehicle or that of the other driver, permit the insurer to avoid liability when a subsequent claim is later made, for an unrelated incident? The court a quo found that the failure of the appellant to report two previous incidents within the time frames stipulated in the policy, even though he had no intention of lodging a claim under the policy, was sufficient for the insurer to avoid liability. The court a quo ultimately concluded at para 34 that:

“The Plaintiff should have reported these previous incidents within the time frames required in terms of the policy, even if he did not want to claim. He failed to do so. This failure amounted to a material non-disclosure or breach of the terms of the policy, absolving the Defendant from liability.”

Advertisement

2. The facts of the matter relevant to the issue for determination on appeal are largely common cause.  The appellant owned an Audi R8, a high performance sports motor vehicle, which he purchased either in December 2008 or in January 2009.  He entered into a contract of insurance with the respondent to provide comprehensive cover for the vehicle, as well as for his household contents.  The respondent furnished the appellant with a written schedule of the insurance cover, under cover of a letter dated 5 December 2008.  In terms of the policy, the effective date of the cover was 2 January 2009.  In respect of the motor vehicle, the respondent undertook to insure the vehicle against risks set out in the contract, including damage to the vehicle as a result of a collision.

3. The policy schedule issued to the appellant provided for comprehensive cover of his vehicle at retail. This value is not specified, although the record does reflect that the vehicle (according to the appellant) was valued at R1,5m.  The appellant intended to insure the vehicle for less than its retail value, allowing for depreciation. The policy schedule issued by the respondent drew to the attention of the insured the following:

Advertisement

EMAIL THIS ARTICLE      SAVE THIS ARTICLE

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here

Comment Guidelines

About

Polity.org.za is a product of Creamer Media.
www.creamermedia.co.za

Other Creamer Media Products include:
Engineering News
Mining Weekly
Research Channel Africa

Read more

Subscriptions

We offer a variety of subscriptions to our Magazine, Website, PDF Reports and our photo library.

Subscriptions are available via the Creamer Media Store.

View store

Advertise

Advertising on Polity.org.za is an effective way to build and consolidate a company's profile among clients and prospective clients. Email advertising@creamermedia.co.za

View options
Free daily email newsletter Register Now