2010 MarsdenLR 4526

HARMINDAR SINGH DHALIWAL
NADARAJAN SUBRAMANIAM – Appellant
Versus
AMERICAN INTERNATIONAL ASSURANCE CO LTD – Respondent

Insurance companies cannot deny claims based on non-receipt of nomination forms when forms are proven signed by the insured; material non-disclosure is not valid if it does not impact the insured risk.

Headnote:(A) Insurance Act 1996 - Sections 165(1) and 151(1) - Personal accident policies - Claim for life insurance benefits following death of the insured - Claim repudiated by insurer on grounds of nominee status, non-disclosure of material facts, and cause of death - Court held that the insured was indeed the nominee as evidenced by signed forms, repudiation due to non-disclosure was unfounded as nature of occupation did not affect liability, and the death was caused by an accident - Insurer's arguments lacked merit; claim allowed. (Paras 1-34)

(B) Nominee Status - Assurance that knowledge of agent translates to knowledge of insurer, thus binding insurer. (Paras 8-10)

(C) Material Non-disclosure - No material misrepresentation by deceased regarding occupation; nature of employment did not affect risk insured. (Paras 14-18)

(D) Cause of Death - Court determined that intracerebral hemorrhage resulted from a fall rather than illness; evidence pointed to accidental death warranting payout. (Paras 19-33)