Mossiah v Regent Insurance Company Ltd et Al

• Jurisdiction: Belize
• Judge: Shanks, J.
• Judgment Date: 02 February 2000
• Court: High Court (Belize)
• Docket Number: 196 of 1999
• Date: 02 February 2000

High Court

Shanks, J.

196 of 1999

Mossiah

and

Regent Insurance Co. Ltd. et al

Appearances:

Mr. Nicholas Dujon for the plaintiff.

Mrs. Louis Young-Barrow for the first defendant.

Insurance Law - Motor insurance policy — Thirty day cover note issued by first defendant's agent — Vehicular accident — First defendant resisted claim — Motor Vehicle Insurance (Third Party Risks) Act — Whether the cover note was valid at the date of the accident — Finding that section 19 of the Act did not permit the defendants to rely on the fact that the assured were not the owners of the vehicle since the agent of the first defendant was aware of that fact — Judgment for the plaintiff.

Shanks, J.

1 This is a claim under section 19 of the Motor Vehicle Insurance (Third Party Risks) Act. On 5th July, 1997 the plaintiff suffered a road traffic accident upon colliding with a vehicle CZL CF851 being driven by Rigiberto Bonilla. He started proceedings and obtained a judgment against Mr. Bonilla in the sum of $116,998 with interest and costs in respect of that accident. There was in existence a 30 — day cover note No. 38503 in respect of CZL C6651 dated 9th June, 1997 signed on behalf of the defendant insurance company by Becky Orio (who was Second defendant but played no part in the trial). That cover note stated that:

“Mr. Gilberto Vivas/Florencio Esquivel/Mario Quan having proposed for insurance or having renewed in respect of the Motor Vehicles) described in the Schedule below and having paid the sum of … the risk is hereby held covered in terms of the Company's usual Motor Vehicle Insurance Policy applicable thereto for a period of thirty days that is to say from … am/pm on the above date to the same time on the thirtieth day after such date. This Covering Note may be cancelled on seven days written notice given by the Company to the Insured in which case the insurance will thereupon cease and a proportionate part of the annual premium otherwise payable for such insurance will be charged for the time that the Company has been on risk. Upon the issue of a Policy this Covering Note shall cease.”

2 The schedule gave details of vehicle CZL C6651 and at the bottom left hand corner near the date 16th April, 1997 –16th April, 1999 were handwritten.

3 Section 19(1) states as follows:

• (1) “If, after a certificate of insurance has been issued under section 4(3) in favour of the person by whom a policy has been effected, judgment in respect of any such liability as is required to be covered by a policy under section 4(1)(b) or (c) (being a liability covered by the terms of the policy is obtained against any person insured by the policy, then, notwithstanding that the insurer may be entitled to avoid or cancel, or may have avoided or cancelled the policy, the insurer shall, subject to this section, pay to the persons entitled to the benefit of the judgment any sum payable thereunder in respect of the liability including any amount payable in respect of costs and any sum payable in respect of interest on that sum by virtue of any enactment relating to interest on judgments.”

4 Although the terms of that section appeared to be prima facie satisfied, Ms. Young for the defendant resisted the claim on a number of grounds. Since it seemed to me that the onus was on her to establish one or more of these grounds, she called her evidence first. Mr. Alpuche was called from the Department of Transport. His evidence showed that the vehicle had been registered in the name of Mr. Quan from 18th April, 1996, that he was issued with a duplicate certificate of registration from 7th July, 1997 and that the registered ownership of the vehicle was transferred from Quan to Florencio Esquivel on 12th July, 1998.

5 Mr. Flyn, the Managing Director of Regent, gave evidence. He told me those agents like Becky Orio had authority to issue 30 — day cover notes if satisfied that a risk was acceptable to Regent. They then send the proposal form and a' copy of this cover note to Regent's officer in Belize City. He produced his Company's underwriting guide, which stated among other things:

• “(3) Upon acceptance (by the agent) of a completed motor Proposal & Declaration, and payment of premium, a cover note shall be issued. This covering note shall bear the date wherein the client actually signs the Proposal & Declaration Form; irrespective of any other intimation to confirm/effect cover, whether they be verbal or otherwise. ACOVERNOTE SHALL NOT BE BACKDATED. This is a criminal...