LESTER BROS. (COAL MERCHANTS), LTD. v. AVON INSURANCE CO., LTD.

(1942) 72 Ll.L.Rep. 109

KING'S BENCH DIVISION.

Before Mr. Justice Atkinson.

Motor insurance - Third-party risks - Construction of policy - Commercial motor vehicle policy issued to coal merchants (limited company) covering company's lorries- Cyclist injured by company's lorry being driven by R.- Judgment recovered by cyclist against company- Right of company to indemnity from insurance company - R. driving without licence at time of accident - Arbitration - Award in favour of coal company- Case stated- Findings of arbitrator that D., director of company, had applied for National Service driving licence for R.; that neither D. nor the company knew prior to the accident that R. did not hold a licence (nor could knowledge be imputed to them) though that fact could easily have been ascertained by inquiry- Provision in policy conditions that the insurance company should not be liable under the policy "whilst such vehicle is . . . (b) being driven by the insured unless he (i) holds a licence to drive such vehicle or (ii) has held and is not disqualified for holding or obtaining such a licence. (c) Being driven with the general consent of the insured or his representative by any person who to the knowledge of the insured or of such representative does not hold a licence to drive such vehicle unless such person has held and is not disqualified for holding or obtaining such a licence" - Construction.