A court ruled today that a motor vehicle insurance policy was rendered null and void due to the failure on the part of the vehicle's owner to make a full disclosure of the facts.

The judgment was delivered by Mr Justice Tonio Mallia in the case filed by Calcidon 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 bought comprehensive insurance 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 with the insurance company but the latter refused to honour the claim. Mr Vella then asked the court to declare that he was entitled to payment of Lm17,500 and for the company to pay him this sum.

But Gasan Mamo told the court that Mr Vella had not honoured his contractual obligation to make a full disclosure of the facts when he had obtained insurance cover.

Mr Justice Mallia pointed out that it had resulted from the evidence that Mr Vella was aware, at the time he had obtained the insurance, that the vehicle's chassis number was different to that which he had given Gasan Mamo. Mr Vella had tried, prior to obtaining the insurance, to order another key for the car. But when the key was brought to Malta from overseas, it had not matched the car as the chassis number of the car was not according to the manufacturer's manual. Mr Vella had obtained an extra ignition key independently.

Mr Vella had also failed to tell Gasan Mamo that he had other insurance claims pending.

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

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