Central Insurance Co. Ltd. V. Emeka Okoli (2007)

LawGlobal-Hub Lead Judgment Report

ABUBAKAR ABDULKADIR JEGA, J.C.A.

This is an appeal against the judgment of the Kano State High Court of Justice presided over by Hon. Justice A.M. Haliru in Suit No.K/795/03 wherein the learned trial Judge found the appellant liable to the respondent in the total sum of =N=15 Million claimed under two different Life Assurance Policies (Keyman & Endowment) underwritten by the appellant on the life of late Chief Cletus Okoli. The judgment was delivered on 30th July, 2004.

The facts of this case as can be seen from the totality of the records presented before this Court inclusive of the briefs are as follows –

At all material times, the appellant is an Insurance Company. The respondent is an infant/student who instituted the suit against the appellant in his capacity as the son/personal representative of one Late Chief Cletus Okoli.

The deceased Chief Cletus Okoli had procured two different Life Assurance Policies on two different dates from the appellant. Under the 1st Assurance policy (keyman), the appellant agreed to pay the sum of =N=10 Million to the named beneficiary, Magnum Trust Bank Plc upon the death of the said Chief Cletus Okoli. The keyman policy took effect from 1/5/2001 under the life endowment policy the appellant undertook to pay the sum of =N=5 Million to the beneficiary upon the death of the said Chief Cletus Okoli. The endowment policy took effect from 1/10/2002.

Chief Cletus Okoli (Re Life Assured) died on 27th February 2003. A claim was lodged on behalf of the respondent for the recovery of the total sum Assured of =N=15 Million. The cause of death was however a bone of contention between the appellant and the respondent. The appellant insisted that the deceased died as a result of acute liver failure, hepglocellular cancer, essential hypertension and other ailments which were known and expected to have been known to the deceased. The respondent’s case was that the deceased died as a result of motor accident.

The appellant repudiated the claim on the ground that the deceased breached his duty of UTMOST GOOD FAITH by concealing and misrepresenting material facts in the two proposal Forms (exhibits 17 & 18) which formed the basis of contract between the appellant and the deceased Chief Cletus Okoli.

The respondent who claimed as the first son/personal representative of the deceased Chief Cletus Okoli commenced the suit in his own name. He subsequently sought and obtained leave of the court to sue through his next friend, namely Mrs. Nkiru Okoli.

During trial, parties adduced evidence in support of their pleadings. Counsel to the parties delivered their respective addresses. Judgment was thereafter delivered on the 30th July 2004.

In the said judgment, learned trial Judge found the appellant liable to the respondent Although Magnum Trust Bank Plc the payee/beneficiary of the Keyman Policy was not a party to the suit, the sum of =N= 10 Million was adjudged payable to Magnum Trust Bank Plc by the defendant/appellant upon the production of the original Life Assurance Policy.

The appellant being evidently dissatisfied with the judgment of the trial court has appealed to this Honorable Court vides a Notice of Appeal dated 9th August 2004 and an additional grounds of appeal dated 23rd September 2004.

Upon a total number of seven grounds of appeal contained in the Notice of Appeal dated 9/8/2004 and additional grounds of appeal dated 23/9/04, the appellant formulated five issues for determination. The Issues are stated thus:-

“1. Whether having regard to the age of the respondent (infant) the respondent has or lacks the locus standi to institute the action in his name.

2. Whether the learned trial Judge rightly or wrongly awarded the sum of -N=10 Million in favour of Magnum Trust Bank Plc as the beneficiary/assignee of Keyman Life Assurance Policy despite the fact that Magnum Trust Bank Plc was neither a party nor a claimant in the said suit.
3. Whether the deceased Chief Cletus Okoli did or did not breach his duty of utmost good faith to the appellant.
4. Whether the deceased Chief Cletus Okoli breached or did not breach the warranties in the information contained in the proposal Forms which form the basis of the contracts between the appellant and Chief Cletus Okoli.
5. Whether the learned trial Judge rightly or wrongly rejected the autopsy report of Aminu Kano Teaching Hospital which showed the actual cause of death of the deceased Chief Cletus Okoli on the ground that the author of the report was not called to tender the report.”

The respondent on his part formulated three issues for determination. The Issues are stated thus:-