GENERAL ACCIDENT, FIRE AND LIFE, ASSURANCE CORPORATION, LTD. v. SHUTTLEWORTH AND ANOTHER.

(1938) 60 Ll L Rep 301

KING'S BENCH DIVISION.

Before Mr. Justice Humphreys.

Motor insurance-Avoidance of policy- Third party injured-Judgment recovered against assured-Declaration claimed by insurance company that they were entitled to avoid policy (and/or cover subsequently granted to assured upon substitution of car) on ground of fraudulent misrepresentation of fact; further, on ground that the insurance company were never on risk-Evidence that before the substituted cover was issued the assured had been convicted of driving a motor cycle without a certificate of insurance being in force, that he had been fined, and that he had been disqualified from driving for 12 months-Condition of policy providing that company should not be liable while any car was being driven by the policy holder unless he held a licence to drive such car-Effect of Road Traffic Act, 1934, Sect. 10 (1), (3), (5)-"Liability covered by the terms of the policy"-Whether policy of no effect-Non-compliance by company with Sect. 36 (5) of the Road Traffic Act, 1930-Policy sent direct to finance corporation, with whom assured had hire-purchase agreement- Right of defendants (the assured and the third party being joined) to rely on cover note-Provision of cover note that risk was covered "in terms of the [company's] usual form of policy applicable thereto."