GUARDIAN ASSURANCE COMPANY, LTD. v. SUTHERLAND AND ANOTHER.

(1939) 63 Ll L Rep 220

KING'S BENCH DIVISION.

Before Mr. Justice Branson.

Motor insurance-Concealment of material facts - Claim by insurance company for declaration that they were entitled to avoid policy - Policy issued to Sutherland (first defendant) in respect of car No. 1-Car No. 1 substituted by car No. 2 and later by car No. 3- Injuries sustained by third parties while car No. 3 being driven by Sidebotham (second defendant) with permission of first defendant-Action brought by third parties against defendants -Whether defendants entitled to be indemnified under policy-Evidence that Sutherland in fact had no interest in car No. 3 at time of accident - Admission by defendants that insurance of car No. 1 was obtained by misrepresentation - Contention by defendants that new contract of insurance was effected when cars Nos. 2 and 3 were substituted, which was not invalidated by reason of any misrepresentation - Whether policy, being a policy issued under Sect. 36 of the Road Traffic Act, 1930, remained in force, imposing a statutory liability on the insurance company - Road Traffic Act, 1930, Sect. 36 (1): "In order to comply with the requirements of this Part of this Act, a policy of insurance must be a policy which . . . (b) insures such person, persons or classes of persons as may be specified in the policy in respect of any liability which may be incurred by him or them in respect of the death of or bodily injury to any person caused by or arising out of the use of the vehicle on a road . . . (4) Notwithstanding anything in any enactment, a person issuing a policy of insurance under this section shall be liable to indemnify the persons or classes of persons specified in the policy in respect of any liability which the policy purports to cover in the case of those persons or classes of persons."