Judge declares car insurance policy null and void

A court yesterday found in favour of an insurance company and ruled that a motor vehicle insurance policy had been rendered null and void due to the failure on the part of the owner to make a full disclosure of the facts.

The judgment was delivered by Mr Justice Tonio Mallia in the case filed by Calċidon Vella against Gasan Mamo Insurance Agency Ltd. The company was acting on behalf of the foreign company CGU Insurance plc.

Mr Vella told the court that he had obtained comprehensive insurance cover from Gasan Mamo for his Saab car in the sum of Lm17,500. When the car was stolen from Paceville in April 2001, Mr Vella filed a claim but the insurance company refused to honour the claim.

Mr Vella asked the court to declare that he was entitled to Lm17,500 which the company should pay.

However, Gasan Mamo argued that Mr Vella had not honoured his contractual obligation to make a full disclosure of the facts when he had obtained insurance cover. Such a failure brought about the nullity of the insurance cover.

Mr Justice Mallia pointed out that it had resulted from the evidence produced that Mr Vella was aware, at the time he had obtained the insurance, that the vehicle's chassis number was different to that he had given to Gasan Mamo. Mr Vella had tried, prior to obtaining the insurance, to order another key to the car but when the key arrived from overseas it had not matched the car because the chassis number of the vehicle did not tally with the manufacturer's manual. Mr Vella had obtained an extra ignition key independently.

He had also failed to inform Gasan Mamo that he had other insurance claims pending.

It was Mr Vella's duty, the court noted, to come clean with the insurance company and, if necessary, to discuss his situation with it.

The court found in favour of Gasan Mamo and declared the policy to be null and void.

Lawyer Michael Zammit Maempel acted for the company.

Lawyer John Vassallo was counsel to Mr Vella.