Northern Assurance Company Ltd V Stephen Idugboe (1966)

LawGlobal-Hub Lead Judgment Report

ONYEAMA, J.S.C. 

The plaintiff/respondent commenced an action against the defendant Company, who are the appellants, (hereinafter referred to as the Company) in the High Court of Western Nigeria on the 9th of December, 1963, claiming £1,200 under an alleged policy of insurance. His case was that on the 17th of September, 1963, he paid £98 as premium for a comprehensive insurance cover in respect of a Citroen saloon car registered as WW3 1 1 1 and valued at £1,200 by the plaintiff to an agent of the company. The plaintiff filled up a proposal form which was handed to this agent who then issued a “cover note” to the plaintiff. On the, day following the issue of this cover note the car insured was involved in an accident and became a total loss.

The plaintiff then made a claim to the Company who repudiated liability on a number of grounds of which the most important and relevant for the purpose of this appeal was that there was a material non-disclosure of fact on the proposal form which formed the basis of the contract. The issue of non-disclosure was squarely before the trial court, for the plaintiff in paragraphs 6 and 7 of the Statement of Claim pleaded:

“6. At the time the proposal form was being completed plaintiff made it known to the agent, (Mr Y. Aika) that he could not write or read but that he could sign his name; wherefore Mr Aika requested plaintiffs clerk, Mr Pullen Ugheneze to complete the form while he (Mr Y Aika) was dictating to him what he should put down.

“7. Whilst the form was being filled the plaintiff made it known to Mr Aika that he had taken out a third party insurance policy on the car, but Mr Aika told plaintiff that it did not matter. Plaintiff also disclosed to the agent that he had insured other vehicles with the defendant Company, and other insurance companies before.”

The Company answered as follows:

“3. Paragraphs (6, 7, 9 and 10 of the Statement of Claim are denied. “

“4. (Not relevant)

“5. The defendants aver that the plaintiff induced the issue to the said cover note referred to in paragraph 5 of the Statement of Claim by reason of non-disclosure of facts material to be made known by the said plaintiff and by representations of fact which were false in material particulars.

PARTICULARS OF NON-DISCLOSURE

“The plaintiff failed to disclose that prior to the issue of the said cover note that the said car No. WW3 111 was already insured with Provincial Insurance Company Limited from 10th May, 1963 to 9th May, 1964 inclusive under cover note No. 36109 of 10th May, 1963 and policy No. 603839. The plaintiff failed to disclose that the West African Provincial Insurance Co. Ltd. refused to grant him a comprehensive cover.”

The Company also alleged that the cover note issued by the agent Yesufu Aika was procured by fraud as it was backdated to cover a risk which had already resulted in a loss before it was issued. This allegation was negatived by the finding of the trial judge and there is no need to consider it further.

The material portion of the judgment appealed from which deals with the non-disclosure complained of is in the following terms:

“It is clear that Mr Yesufu Aika was the defendant’s agent. Each of the particulars of non-disclosure relied on by the defendants was disclosed to him by the plaintiff as he, the plaintiff and the plaintiffs clerk Pullen Ugheneze have told this court. He knew that the plaintiff was an illiterate man who could only write his name. He and the plaintiffs clerk who had never filled a proposal form before filled the form on the information supplied by the plaintiff.