ROYAL EXCHANGE ASSURANCE vs. TAILOR [1973]DLHC2277

Date	1973-12-21
Suit No.
Citation No.	[1973]DLHC2277

ABBAN J.

AGYEMAN-PREMPEH (JAMES QUASHIE-IDUN LEADING HIM) FOR THE PLAINTIFFS.

OHENE-AMPOFO (TABI WITH HIM) FOR THE DEFENDANT.

[1973]DLHC2277
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													<main id="main" class="content" style="min-height: 60rem" >ROYAL EXCHANGE ASSURANCE <o:p></o:p>vs. <o:p></o:p>TAILOR <o:p></o:p>[HIGH COURT,
ACCRA]<o:p></o:p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[1973]
1 GLR 226<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
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DATE:
21 DECEMBER 1972.<o:p></o:p>

</div>COUNSEL:&nbsp;&nbsp; <o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
padding:0in 0in 0in 0in">

AGYEMAN-PREMPEH (JAMES QUASHIE-IDUN LEADING HIM)
FOR THE PLAINTIFFS.<o:p></o:p>

OHENE-AMPOFO (TABI WITH HIM) FOR THE DEFENDANT.<o:p></o:p>

</div>CORAM:
<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
padding:0in 0in 0in 0in">

ABBAN J.<o:p></o:p>

</div><o:p>&nbsp;</o:p>JUDGMENT OF ABBAN J.<o:p></o:p>The
plaintiffs are an insurance company, carrying on business in Ghana. In June
1962 they issued to the defendant, who is a transport owner, a third party policy
No. CV 39736 in respect of a number of vehicles. Later, the plaintiffs agreed
to extend the said policy to cover an Austin commercial vehicle No. GE 2844,
also owned by the defendant.<o:p></o:p><o:p>&nbsp;</o:p>On or
about 29 August 1963, by a hire-purchase agreement, the defendant sold the said
vehicle No. GE 2844, to one Kwasi Twum. The plaintiffs contending, that the
sale was without their knowledge, brought the present action for a declaration
that the policy No. CV 39736, so far as the vehicle No. GE 2844 was concerned, became
void and of no effect after the said sale. The defendant in his statement of
defence admitted that he had sold the vehicle under a hire-purchase agreement
as alleged, but he averred that be did so with the consent of the plaintiffs,
because the plaintiffs knew all the time that the defendant was running a
transport business by selling, on hire-purchase, all those vehicles which were
insured with the plaintiffs.<o:p></o:p><o:p>&nbsp;</o:p>On 16
March 1972, both counsel agreed that the main issue in the case is one of law.
That is whether the defendant after selling the vehicle No. GE 2844 to one
Kwasi Twum still had an insurable interest in the said vehicle. It is obvious
that if the defendant could not be said to have an insurable interest in the
said vehicle, then of course, the said policy would have to be declared void
and of no effect, so far as that particular vehicle is concerned.<o:p></o:p>Thus, by
consent, that issue was set down for legal argument. The summary of the
argument of learned counsel for the plaintiffs is that the defendant, having
disposed of the vehicle to the said Kwasi Twum, has no more interest in the
vehicle, because once the vehicle has been sold the defendant’s rights as the
owner automatically ceased and the policy lapsed. Counsel submitted that it
does not make any difference whether the sale was an outright one or on a
hire-purchase. Learned counsel for the plaintiffs relied on certain cases which
were referred to by the Court of Appeal in the case of Royal Exchange Assurance
v. Sosu, Court of Appeal, 4 May 1970, unreported.<o:p></o:p><o:p>&nbsp;</o:p>In his
reply, learned counsel for the defendant argued that in spite of the sale by a
hire-purchase agreement, the defendant still had an insurable interest. He
submitted that the defendant would cease to have any interest in the vehicle only
after the said Kwasi Twum had fully paid the purchase price of the vehicle.
Until then, counsel submitted, Kwasi Twum had only possession and the policy
was effective and binding. Learned counsel further contended that since the
plaintiffs were aware that the defendant was engaged in selling all the
vehicles which were insured with them, they are estopped from saying that they
did not know of the transfer of possession of the vehicle to Kwasi Twum.
Counsel relied on Halsbury’s Laws of England (3rd ed.), Vol. 22, p. 315, para.
638, and also on the case of Afriyie v. Guardian Assurance Company [1964]
G.L.R. 234.<o:p></o:p><o:p>&nbsp;</o:p>I think
the whole case depends on what is meant by an “insurable interest.” It seems to
me that in Royal Exchange Assurance v. Sosu (supra) the Court of Appeal held
that if the person insured has disposed of his ownership in the property
insured, he could no longer be said to have any insurable interest in the said
property. The following passages appearing in the judgment of the court make
this position clear:<o:p></o:p>