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10.0.6764;}{\info{\title IN THE HIGH COURT OF FIJI}{\author Gurmeet}{\operator blake_r}{\creatim\yr2005\mo12\dy13\hr10\min34}{\revtim\yr2005\mo12\dy13\hr10\min34}{\printim\yr2004\mo8\dy31\hr14\min49}{\version2} {\edmins1}{\nofpages14}{\nofwords4972}{\nofchars28341}{\*\company Judicial Department}{\nofcharsws33247}{\vern16391}}\margl2160\margr2160 \widowctrl\ftnbj\aenddoc\noxlattoyen\expshrtn\noultrlspc\dntblnsbdb\nospaceforul\formshade\horzdoc\dghspace180 \dgvspace180\dghorigin1701\dgvorigin1984\dghshow0\dgvshow0\jexpand\viewkind4\viewscale100\pgbrdrhead\pgbrdrfoot\nolnhtadjtbl\rsidroot12014613 \fet0\sectd \linex0\endnhere\titlepg\sectdefaultcl\sftnbj {\*\pnseclvl1\pnucrm\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl2\pnucltr\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl3\pndec\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl4\pnlcltr\pnstart1\pnindent720\pnhang {\pntxta )}}{\*\pnseclvl5\pndec\pnstart1\pnindent720\pnhang {\pntxtb (} {\pntxta )}}{\*\pnseclvl6\pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl7\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl8\pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl9 \pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 \fs24\lang1033\langfe5129\cgrid\langnp1033\langfenp5129 { \b\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 IN THE HIGH COURT OF FIJI \par AT SUVA \par CIVIL JURISDICTION \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 CIVIL ACTION NO. HBC 475 OF 2002 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Between: \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\b\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 SHORE BUSES LIMITED \par }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Plaintiff \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\b\lang2057\langfe5129\langnp2057\insrsid12014613\charrsid14506983 -v-}{\b\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\b\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 QUEENSLAND INSURANCE (FIJI) LIMITED \par }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Defendant \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par }{\i\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Mr. H. Nagin}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 for the Plaintiff \par }{\i\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Mr. F. Haniff}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 for the Defendant \par \par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\b\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 JUDGMENT \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par By originating summons dated 25 November 2002, Shore Buses Limited (the \lquote plaintiff\rquote ) is seeking the following declaration and order against Queensland Insurance (Fiji) Limited (the \lquote defendant\rquote ): \par \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid12014613\charrsid14506983 1. }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \'93 A declaration that the Defendant is liable to indemnify the Plaintiff under the Defendant\rquote s Comprehensive Motor Vehicle Insurance Policy No. 0075543 over its bus registration No. CP433 for passenger risk liability up to a maximum of $100,000 in respect of each claim arising out of a road accident. \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid12014613\charrsid14506983 2. }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 An Order t hat Defendant do indemnify the Plaintiff against the interlocutory judgment entered against the Plaintiff in Civil Action Nos. 206 of 1997 and 207 of 1997 at the High Court, Suva and against all damages assessed thereunder and all costs to the limit of $1 00,000 in each case.\'94 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid12014613\charrsid14506983 \par }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 The plaintiff has filed an affidavit in support of the summons sworn by Jasper Singh (\lquote Mr. Singh\rquote ), the Man}{\lang2057\langfe5129\langnp2057\insrsid4281353\charrsid14506983 ager of the Plaintiff Company. }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 An affidavit in Reply has been filed by John Hunt, the General Manager of the defendant Company.}{\lang2057\langfe5129\langnp2057\insrsid14506983 }{ \lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 This was followed by an Affidavit in reply from Mr. Singh. \par \par As ordered, both counsel filed written submissions for Court\rquote s consideration. \par \par }{\b\lang2057\langfe5129\langnp2057\insrsid12014613\charrsid14506983 A. }{\b\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 BACKGROUND FACTS: \par }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par The plaintiff\rquote s counsel Mr. Nagin has stated clearly the background facts in his written submission as stated hereunder: \par \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \'93 The Plaintiff operates a Bus service and was at all material times the registered proprietor of Motor Vehicle CP433 for which a comprehensive insurance cover was carried by the }{\lang2057\langfe5129\langnp2057\insrsid12014613\charrsid14506983 Defendant.} {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 The Comprehensive Policy No. 0075543 also had a passenger liability exte}{\lang2057\langfe5129\langnp2057\insrsid12014613\charrsid14506983 nsion limited to $100,000.00.}{ \lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid14506983 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 During the currency of the said Insurance Policy Bus CP433 was involved in an accident and some of the}{\lang2057\langfe5129\langnp2057\insrsid4281353\charrsid14506983 passengers received injuries. }{ \lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 The Plaintiff\rquote s driver appears to have lost control of the Bus}{\lang2057\langfe5129\langnp2057\insrsid12657622\charrsid14506983 CP433 and the Bus overturned. }{ \lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 The driver was convicted for dangerous driving by the Suva Magistrate\rquote s Court and fined a sum of $100.00. \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid14506983 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 The Plaintiff was subsequently served with Writs of Summons in High Court Civil Action Nos. 206 of 1997, 207 of 1997, 254 of 1998, 255 of 1998 and 257 of 1998.}{\lang2057\langfe5129\langnp2057\insrsid14506983 }{ \lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 These writs were filed by persons who were passengers in Bus CP433 and received }{\lang2057\langfe5129\langnp2057\insrsid4281353\charrsid14506983 injuries in the said accident. }{ \lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 In Civil Action Nos. 206 of 1997 and 207 of 1997 interlocutory judgments were entered against the Plaintiff with damages to be assessed.\'94 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par The accident took place at Walu Bay on 3 May 1996 when several passengers travelling in the bus sustained injuries and have filed separate actions for negl}{\lang2057\langfe5129\langnp2057\insrsid4281353\charrsid14506983 igence against the plaintiff. }{ \lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Some of the injured passengers in the bus had sought damages in the abovementioned actions. \par \par }{\b\lang2057\langfe5129\langnp2057\insrsid12014613\charrsid14506983 B. }{\b\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 THE ISSUE \par }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par By originating summons the plaintiff is now seeking to be indemnified by the defendant in terms of section 6 of the Policy according to its interpretation. \par \par The defendant maintains that section 6 is restricted to the sum of $10}{\lang2057\langfe5129\langnp2057\insrsid12657622\charrsid14506983 ,}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 000.00 to all claims in one accident. \par \par The answer to the question asked in the summons depends upon the true construction of the said section 6 of the Policy i}{\lang2057\langfe5129\langnp2057\insrsid14506983\charrsid14506983 n relation to the agreed facts.}{ \lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par \par }{\b\lang2057\langfe5129\langnp2057\insrsid12014613\charrsid14506983 C. }{\b\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 PLAINTIFF\rquote S CONTENTION \par }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par Mr. Nagin submits that section 6 of the Policy does not either apply to restrict the sum of $100,000.00 to all claims in one accident \lquote nor}{\lang2057\langfe5129\langnp2057\insrsid14828975\charrsid14506983 does it apply to passengers\rquote .}{ \lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par \par He says that the defendant\rquote s argument that the liability is limited to $100,000.00 \lquote does not make much sense\rquote when one looks at the Compulsory Third Party Policy where each pas}{ \lang2057\langfe5129\langnp2057\insrsid4281353\charrsid14506983 senger is covered for $4000.00.}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 He says that when the Bus Company \'93 purchases additional cover under the Comprehensive Policy it seeks to extend cover of $4,000.00 for each passenger to $100,000.00 for each passenger.\'94 \par \par Counsel cites authorities to say that the plain and ordinary meaning of the policy must be given effect to (vide }{\b\i\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 New India Insurance Company Limited v Shambhu Prasad FCA }{ \lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Civil Appeal No. 0010 of 1998). He further submits that if there is genuine ambiguity then using the \lquote contra proferentem\rquote rule, that ambiguity must be resolved in favour of the insured (}{\b\i\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 New India Insurance Company Limited v D. Gokal & Company Limited}{ \lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 FCA Civil Appeal No. ABU003 5 of 2001S). This was a case where the insurance company was required under the passenger liability extension of the comprehensive Policy (like the present case) to indemnify the \lquote insured\rquote in relation to a personal injury claim by a passenger in the vehicle. \par \par Mr. Nagin submits that the case law referred to by Mr. Haniff in his submissions have no application to this case. \par \par Counsel maintains that in the light of the authorities in this case \lquote each injury to a passenger was a separate accident arising from a separate event but aris}{\lang2057\langfe5129\langnp2057\insrsid4281353\charrsid14506983 ing from one originating cause.}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Even if section 6 of the Policy applied (but it is strongly submitted that it does not) the limitation there does not limit the Defendant\rquote s liability to an aggregate of $100,000.00 but to $100,000.00 to each passenger.\rquote \par \par He says that each policy needs to be}{\lang2057\langfe5129\langnp2057\insrsid4281353\charrsid14506983 construed on its own wording. }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 For the above reasons he submits that the defendant should indemnify the plaintiff in respect of all the claims for personal injury arising out of the accident on 3 May 1996 involving Bus CP433 to the maximum of $100,000.00 in respect of each claim. \par \par }{\b\lang2057\langfe5129\langnp2057\insrsid12014613\charrsid14506983 D. }{\b\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 DEFENDANT\rquote S CONTENTION \par }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par The defendant submits that the injury to each passenger in the bus constituted \lquote an accident}{\lang2057\langfe5129\langnp2057\insrsid12014613\charrsid14506983 \rquote .}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Injuries to several passengers constituted a \lquote series of accidents arising from one event, that is, the overturning of the bus on its side. \par \par Therefore, counsel says that the defendant is only liable to a maximum of $100,000.00 in respect of the injuries caused to the passengers of bus Registration No. CP433 arising out of the accident. \par \par He submits that the total of any liability of the insurer to indemnify the plaintiff in respect of all claims in respect of or arising out of injuries suffered by the passengers by reason of the bus overturning to its side is limited to $100,000.00. \par \par }{\b\lang2057\langfe5129\langnp2057\insrsid12014613\charrsid14506983 E. }{\b\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 DETERMINATION OF THE ISSUE \par }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par There is a very narrow but an important issue for the Court\rquote s determination.}{\lang2057\langfe5129\langnp2057\insrsid14506983 }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 It is the interpretation of section 6 of Policy No. 0075543 which is in question in this case. \par \par }{\b\lang2057\langfe5129\langnp2057\insrsid12014613\charrsid14506983 (i) }{\b\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Relevant provisions in the Policy \par }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par The said section 6 under the caption \lquote Your Legal Liability (Personal and Property) and Law Costs\rquote reads as follows: \par \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid14506983 {\lang2057\langfe5129\langnp2057\insrsid14828975\charrsid14506983 \'936.}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 If as a result of an accident caused by or in connection with the use of your vehicle, or a caravan or trailer which it is towing, you are held to be legally responsible for injury, or da}{\lang2057\langfe5129\langnp2057\insrsid14506983 mage to property of another, Q.I}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 . will pay those damages. \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid14506983 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Q.I. will also pay all Law Costs, charges and expenses incurred by you with our written agreement or which you may be ordered to pay, provided that any legal action is defended with our written agreement. \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid14506983 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Q.I. will not pay damages for any injury sustained by any relative or friend who lives with you, or with whom you live, nor any employee of yours, nor any person driving the vehicle or entering or leaving the vehicle nor being carried as a passenger. \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid14506983 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Q.I}{\lang2057\langfe5129\langnp2057\insrsid14506983 .}{ \lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 will not pay for damage to property owned by you, in your custody or control, or which you are transporting. \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid14506983 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 This section does not protect you against liability for which a Third Part y Insurance policy is required in accordance with the Motor Vehicles (T}{\lang2057\langfe5129\langnp2057\insrsid14828975\charrsid14506983 hird Party Insurance) Act 1966.}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 It will protect you for any amounts in excess of the amount insured by the Third Party Insurance policy. \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid14506983 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 The maximum amount Q.I. will pay under this sec tion for injury or damage to property is limited to $30,000 in relation to any one accident or series of accidents arising from the one event.\'94 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par In regard to \lquote Passenger Risk\rquote the following appears to and forms part of the Policy: \par \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid14506983 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 It is understood and agre ed that, notwithstanding anything contained therein to the contrary and subject to the Limit of Indemnity stated in the Schedule, the indemnity granted under Item 6 of the Section \'93What You Are Covered For\'94 of this Policy extends to cover the insured\rquote s lia bility at law for death or injury to persons (other than persons driving or any relative of the Insured or any employee of the Insured) being in or on the vehicle described herein entering into or alight from such vehicles. \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par But there is the further provision in the Policy in item 11 which expressly states under the caption \'93Extensions, Exclusion, Limitations, Endorsements and/or Warranties\'94: \'93Passenger Risk Liability $100,000, Third Par}{ \lang2057\langfe5129\langnp2057\insrsid14828975\charrsid14506983 ty Property Damage $1,000,000\'94.}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par \par I think that if just one passenger was injured the interpretation of section 6 may not have arisen for the amount on the Policy would perhaps have been s}{\lang2057\langfe5129\langnp2057\insrsid4281353\charrsid14506983 ufficient to cover the victim. }{ \lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 But because a number of passengers were injured the question for determination is whether the $100,000.00 is l imited to all the claims in this one accident or is it up to $100,000.00 for each injured person. \par \par }{\b\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 (ii) Objects of personal accident insurance \par }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par It is the object of personal accident insurance to provide for payment of a sum of money in the event of the insured sustaining injury.}{\lang2057\langfe5129\langnp2057\insrsid14506983 }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Under \lquote Passenger Risks\rquote in the Policy (as already stated above), it says that the \lquote Policy extends to cover the insured\rquote s liability at law for death or injury to persons (other than persons driving or any relative of the Insured or any employee of the Insured) being in or on the vehicle described herein entering into or alight from such vehicles\rquote . \par \par There is no \lquote definition\rquote of the word \lquote accident\rquote in the Policy except what the insurer will pay for \lquote accidental damage\rquote to the vehicle. \par \par It is the defendant\rquote s contention that the maximum amount payable in respect of the \lquote an accident\rquote is $100,000.00 in relation to any one accident or series of accidents arising from the one event. \par \par Mr. Haniff referred the Court to a single Judge\rquote s decision in the Canadian case of }{\b\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Richardson Construction Co v London and Lancashire Guarantee and Accident Co }{ \lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 [1939] 2 D.L.R 738 where he says a liability indemnity policy contained a limit of $1,000 \lquote for any one accident or series of accidents }{ \lang2057\langfe5129\langnp2057\insrsid14828975\charrsid14506983 arising out of the one cause ..\rquote }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 He says that this clause is similar to the exclusion clause in issue in this case but this is not so. \par \par The facts in }{\b\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Richardson}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 are as follows (as stated by Mr. Haniff): \par \par The Plaintiff was a Construction Company.}{\lang2057\langfe5129\langnp2057\insrsid14506983 }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 It entered into a contract with th e Corporation of the City of Toronto for the construction of a bridge. \par \par During the construction of the bridge, the Plaintiff drove piles by means of a pile driving machine.}{\lang2057\langfe5129\langnp2057\insrsid14506983 }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Pile-driving operations extending over three months had caused damage to four houses o}{\lang2057\langfe5129\langnp2057\insrsid4281353\charrsid14506983 wned by four different people. }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 The four owners alleged, and it was found, that the vibrations resulting from the pile driving had damaged their house. \par \par The issue to be decided was whether the maximum amount the insurer was liable to pay to the four property owners for damage caused by the vibrations was $1,000.00. \par \par There it was held that: \par \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid14828975 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \'93under an insurance policy limiting insurer\rquote s liability to $1000 \'93 for any one accident or series of accidents arising out of one cause,\'94 insurer was liable for $1000 only, the escape of vibrations over several months being \'93one cause}{\lang2057\langfe5129\langnp2057\insrsid4281353\charrsid14506983 \'94 for the series of accidents. }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 There was no ambiguity in the clause and hence no ground for application of the rule of c}{\lang2057\langfe5129\langnp2057\insrsid14828975\charrsid14506983 onstruction contra proferentem."}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par In his judgment Mackay J at 744 said: \par \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid14828975 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \'93 In this case the intention is clear and there is no ambiguity. Hence, if there is an accident in which several persons are injured, the aggregate liability of the insurers is measured by the specified maximum, and the assured has no right to claim a la rger indemnity\'94. \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par }{\b\lang2057\langfe5129\langnp2057\insrsid14828975\charrsid14506983 (iii) }{\b\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Rules of construction of Policy \par }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par I adopt the following statement of Myers, C.J. in }{\b\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 General Accident Fire and Life Assurance Corporation. Limited v. Dowman and Others}{ \lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 [1940] N}{\lang2057\langfe5129\langnp2057\insrsid14506983 .Z.L.R. 797 Sup. Court at 807):}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid14828975 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \'93A person asking for a \'93passenger indemnity\'94 would expect a complete indemnity. }{\lang2057\langfe5129\langnp2057\insrsid14506983 }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 If he read the overleaf note in the proposal, I think his assumption would be that he was obtaining a complete indemnity, and I see nothing in the passenger-indemnity clause itself to contradict what is said in the overleaf note in the proposal.\'94 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par A Policy of insura}{\lang2057\langfe5129\langnp2057\insrsid4281353\charrsid14506983 nce is a contractual document. }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 It is the actual language that is }{ \lang2057\langfe5129\langnp2057\insrsid4281353\charrsid14506983 used in it must be construed. }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 On this aspect it is stated as follows in Hals. 3rd Ed. Vol. 22 para 401 (page 212): \par \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid14828975 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \'93The court\rquote s function, when presented with a conflict between the parties as to what the policy means, is to interpret what the parties have in fact said in their contract, not to postulate what the parties, or one or other of them, might have had in his mind when e ntering into the contract, still less to speculate on the language which might have been used to express this, }{\lang2057\langfe5129\langnp2057\insrsid4281353\charrsid14506983 that, or the other, intention. }{ \lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 What the parties have in fact said is comprised in the words they have used; the problem is to asc}{\lang2057\langfe5129\langnp2057\insrsid4281353\charrsid14506983 ertain what the words mean (a).}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 It is not the function of the court to make for the parties, by a process of construction, a reasonable contract which they ha}{ \lang2057\langfe5129\langnp2057\insrsid4281353\charrsid14506983 ve not made for themselves (b).}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 If the words are clear, precise and unambiguous, effect must be given to them, how ever unreasonable the result may be (c).\'94 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par In }{\b\i\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Bradburn v The Great Western Railway Company}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 1 C.L.R. 1874 1 at 2 Bramwell B in his judgment said with reference to the effect of prem}{\lang2057\langfe5129\langnp2057\insrsid14506983 i}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 u}{ \lang2057\langfe5129\langnp2057\insrsid14506983 m one paid to insure said:}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid14506983 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 In }{\b\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Dalby v. India and London Life Assurance Company}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 (4) it was decided that one who pays premiums for the purpose of insuring himself, pays on the footing that his right to be compensated when the event insured against happens is an equivalent for the premiums he has paid; it is a quid pro quo, larger if he gets it, on the chance that he will never get it at all.}{\lang2057\langfe5129\langnp2057\insrsid14506983 }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 That decision is an authority bearing on the present case for the principle laid down in it applies, and shews that the plaintiff is entitled to retain the benefit which he has paid for in addition to the damages which he recovers on account}{ \lang2057\langfe5129\langnp2057\insrsid14506983 of the defendants\rquote negligence.}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par The following statement of Pigott B in his judgment in }{\b\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Bradburn}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 supra at 3 is pertinent when he said that \lquote it is not the accident, but his contract, which is the cause of his receiving\rquote the money: \par \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid14828975 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \'93 The plaintiff is entitled to recover the damages caused to him by the negligence of the defendants, and there is no reason or justice in setting off what the plaintiff has entitled himself to under a contract with third persons, by which he has bargained for the payment of a sum of money in the event of an accident happening to him.}{\lang2057\langfe5129\langnp2057\insrsid14506983 }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 He does not receive that sum of money because of the accident, but because he has made a contract providing for the contingency; an accident must occur to entitle him to it, but it is not the accident, but his}{ \lang2057\langfe5129\langnp2057\insrsid14506983 }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 contract, which is }{\lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 the cause of his receiving it}{ \lang2057\langfe5129\langnp2057\insrsid14506983 "}{\lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 .}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 (emphasis mine) \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par There is a need for insurers to carefully consider the adequacy of documents to the assured at the time when the contract is made. \par }{\lang2057\langfe5129\langnp2057\insrsid14828975\charrsid14506983 \par }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 The policy of insurance should be construed in accordance with the natural and ordinary meaning of the words and phrases used in it but there are exceptions to this.}{ \lang2057\langfe5129\langnp2057\insrsid14506983 }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 It is the commonly understood and popular meaning from the perspective of ordinary intel ligent person construing the words in a proper way in the light}{\lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 of the relevant circumstances.}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 (}{ \b\i\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Hutton v Watling}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 [1948] Ch 398 at 403). \par }{\lang2057\langfe5129\langnp2057\insrsid14828975\charrsid14506983 \par }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 On interpretation, the following passage from the well known passage from the dissenting judgment of Gibbs J in }{\b\i\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Austral ian Broadcasting Commission v Australian Performing Rights Associ}{\b\i\lang2057\langfe5129\langnp2057\insrsid14506983 a}{\b\i\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 t}{\b\i\lang2057\langfe5129\langnp2057\insrsid14506983 i}{ \b\i\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 on Limited}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 (1973) 129 C.L.R. 99 is pertinent: \par }{\lang2057\langfe5129\langnp2057\insrsid14828975\charrsid14506983 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid14506983 {\lang2057\langfe5129\langnp2057\insrsid14506983 "}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 It is trite law that the primary duty of a court in construing a written contract is to endeavour to discover the intention of the parties from the words of the instrument in w}{\lang2057\langfe5129\langnp2057\insrsid6754571\charrsid14506983 hich the contract is embodied. }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Of course the whole of the instrument has to be considered, since the meaning of any one part of it may be revealed by other parts, and the words of every clause must if possible be construed so as to render them a}{ \lang2057\langfe5129\langnp2057\insrsid6754571\charrsid14506983 ll harmonious one with another.}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 If the words used are unambiguous the court must give effect to them, notwithstanding that the result may appear capricious or unreasonable, and notwithstanding that it may be guessed or suspected that the parties}{ \lang2057\langfe5129\langnp2057\insrsid6754571\charrsid14506983 intended something different. }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 The court has no power to remake or amend a contract for the purpose of avoiding a result which is considered}{\lang2057\langfe5129\langnp2057\insrsid6754571\charrsid14506983 to be inconvenient or unjust. }{ \lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 On the other hand, if the language is open to two constructions, that w ill be preferred which will avoid consequences which appear to be capricious, unreasonable, inconvenient or unjust, even though the construction adopted is not the most obvious, or }{\lang2057\langfe5129\langnp2057\insrsid6754571\charrsid14506983 the most grammatically accurate..}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \'94 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par }{\b\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 (}{\b\lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 iv) }{\b\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Construction of wording of section 6 \par }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par What construction does one place on the relevant clause in the Policy is the question? \par \par It is not denied by the defendant that there is the passenger extension liability of $100,000.00.}{\lang2057\langfe5129\langnp2057\insrsid14506983 }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 But the defendant\rquote s contention is that the $100,000.00 is the maximum in respect of each accident whereas the plaintiff says that it is the maximum in respect of each claim by \lquote any passenger\rquote . \par \par The question is not what that intention was on the issue when the insurer issued the Policy, but what is that true meaning of what it said. \par \par We are concerned with the plain}{\lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 tiff which is a \lquote bus Company\rquote . }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 It carries passeng}{ \lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 ers in its buses all the time. }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 The likelihood of accidents are there and the plaintiff would naturally take out appropr}{ \lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 iate insurance for passengers. }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Apart from co mmon sense, I am sure the parties must have envisaged that more than one passenger is likely}{\lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 to be injured in any accident.}{ \lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 If the defendant did not envi}{\lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 sage this then it should have. }{ \lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 More likely than not that it did bear this in mind and took high premium accordingly. \par \par Therefore on the facts of this case, words and phrases in the Policy need to be construed in the context in which they appear as the terms used can take a different meaning depending on the context in which they appear as in the present case. \par \par In these circumstances Mr. Nagin\rquote s argument seems t}{\lang2057\langfe5129\langnp2057\insrsid14506983 o have some merit when he said: \par \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid14506983 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \'93Under the Compulsory Third Party Policy each p}{ \lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 assenger is covered for $4000. }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 When the Bus Company purchases additional cover under the Comprehensive Policy it seeks to extend the cover of $4,000.00 for each passenger to $100,000 for each passenger.\'94 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par In this case if the defendant did not mean to cover each passenger in that amount of $100,000.00 it could and should have said so by appropriate words.}{\lang2057\langfe5129\langnp2057\insrsid14506983 }{ \lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 It did not do anything of the kind. \par \par Both counsel referred to case law }{\lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 bearing on the issue before me.}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 The case of Richardson (supra) was a Canadian case (single Judge) whereas the case }{\b\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Axa Reinsurance v Field}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 [1996] 3 All }{\lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 E.R. 517 and }{\b\i\lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 Candle v Sharp}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 [1995] I.R.L.R. 433 are House of Lords and Cour}{\lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 t of Appeal cases respectively.}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Mr. Nagin discusses the various terms and words used in these cases and d}{\lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 istinguishes }{\b\lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 Richardson\rquote s}{ \lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 case.}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 He came to the conclusion in the present case that each \'93injury to a passenger was a separate acci dent arising from a separate event but arising from one originating cause.\'94 \par \par In Richardson (supra) Mackay J referred to Welford\rquote s book }{\b\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Accident Insurance}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 1st Ed p.476 which discusses the matter as follows: \par \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid14506983 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \'93Accordingly, if several persons are injured, the aggregate liability of the insurers is not limited to the sum specified in the policy; but they are liable to pay the damages awarded to each person injured, not exceeding in each case, the maximum specified (}{ \b\i\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 South Staffordshire Tramways Co. v Sickness & Accident Assurance Association, Li}{\b\i\lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 mited}{ \lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 [1891] 1 Q.B. 402 C.A.). }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 The policy may, however expressly limit the liability of the insurers to a specified maximum in respect of any accident or series of accidents arising out of one and the same cause, or in respect of any claim or claims arising o}{ \lang2057\langfe5129\langnp2057\insrsid14506983 ut of any one accident or occurr}{\lang2057\langfe5129\langnp2057\insrsid14506983\charrsid14506983 ences}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 .\'94 (}{ \b\i\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Allen v London Guar & Acc. Co}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 (1912), 28 T.L.R. 254). \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par In the said Court of Appeal case of South Staffordshire (supra) one of the questions for the Court was \'93whether the injury caused to each of the persons constituted a separate accident within the meaning of the Policy\'94. \par \par In that case one of the vehicles specified in the Policy overturned, and thereby caused injuries to about forty persons and the p}{\lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 laintiffs became liable to pay }{ \lang2057\langfe5129\langnp2057\insrsid14506983 c}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 ompensation and expenses to the extent of 833l. \par \par There the plaintiffs, tramcar company, effected with the defendants an insurance against \'93claims for personal injury in respect of accidents caused by vehicles for twelve calendar months from November 24, 1887\'94 to the amount of \'931500}{ \i\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 l}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 . in respect of any one accident but not exceeding in all the su}{ \lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 m of 1500}{\i\lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 l}{\lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 in any one year\'94. }{ \lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 One of the tramcars was overturned and forty persons were injured when the plaintiffs became liable to p}{\lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 ay claims to the amount of 833}{\i\lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 l}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 on the Policy. \par \par There one of the questions for the Court was \'93whether the injury caused to each of the said persons contributed a separate accident within the meaning of the policy\'94. \par \par In my view the answer to that question and to the issue before me lies in the judgment of Lord Esher M.R in }{\b\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 South Stafforshire}{ \lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 (supra \endash p407) when he said: \par \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid14506983 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 These were claims for personal injury, i.e., injury to the person, and each person injured claimed for injuries in respect of an accident to his person caused by a vehicle.}{\lang2057\langfe5129\langnp2057\insrsid14506983 }{ \lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 If several persons were injured, I think, upon the true construction of this policy, there were several accidents.}{\lang2057\langfe5129\langnp2057\insrsid14506983 }{ \lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 I agree with the view expressed by Lawrence, J.}{\lang2057\langfe5129\langnp2057\insrsid14506983 }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 For these reasons I think that the plaintiffs are entitled to judgment for the larger amount, and therefore the appeal must be allowed. \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par The view that was expressed by Lawrence J in the Court below and which was also accepted by Lord Esher reads thus: \par \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid14506983 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 It is, I think, to be borne in mind that the object of the policy is to provide for the assured an indemnity against claims made upon them for injuries resulting from the negligence of their servants.}{\lang2057\langfe5129\langnp2057\insrsid14506983 }{ \lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 This being so, I think it more appropriate to hold that the preceding word, \'93accidents,\'94 is used from the point of view of the several claimants u pon the assured for injuries, each of whom claims in respect of a specific accident to himself, and not from that of the insurers, and that therefore \'93any one accident\'94 means any accident to any one claimant upon the insured.}{ \lang2057\langfe5129\langnp2057\insrsid14506983 }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 (emphasis mine) \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 \par }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Bowen L.J}{\lang2057\langfe5129\langnp2057\insrsid14506983 .}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 said: \par \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid13129474 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \'93I think that Lawrence J was right in thinking that \'93accident\'94 meant in the policy the mischief suffered by a person injured to his person or property.\'94 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par Further Fry L.J at p408 said: \par \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid13129474 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \'93I think the word \'93accident\'94 is there used in the same sense as in the earlier part of the policy, and that the meaning is \'93in respect of any single injury to person or property accidentally caused.\'94 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par Bearing in mind the wording of the relevant clause and the context in which the action was brought (case of vibration) in Richardson, I am of the opinion that it can be disti}{\lang2057\langfe5129\langnp2057\insrsid6754571\charrsid14506983 nguished from the case in hand.}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par \par I accept the reasoning behind the Court of Appeal decision in Staffordshire (supra) for there also the wording of the relevant clause resembles very closely the words in the instant case. \par \par }{\b\lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 F. }{\b\lang2057\langfe5129\langnp2057\insrsid6754571\charrsid14506983 CONTRA PROFERENTEM RULE}{\b\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par Because \lquote contra proferentem\rquote rule has been introduced in the submission by Mr. Nagin I shall deal with this aspect to see if this Rule applies in this case. \par \par Although looking at the facts and circumstances of this case and applying the rule of construction I do not find any ambiguity in the Policy in regard to the issue, nevertheless, lest there be any doubt}{\lang2057\langfe5129\langnp2057\insrsid14506983 }{ \lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 the maxim \lquote verba chartarum fortius accipiuntur contra proferentem\rquote (called \lquote contra profe}{\lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 rentem\rquote rule) comes into play. }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 If it does then, I refer to this hereunder to see how it fits in the circumstances of this case. \par \par This contra proferentem rule permits a court to resolve a genuine ambiguity against an insurer which is the author of the contract in dispute.}{\lang2057\langfe5129\langnp2057\insrsid14506983 }{ \lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 This rule is only applicable when there is a genuine ambiguity in a policy and therefore reserved for those cases where the meaning of a word or phrase is entirely unclear.}{ \lang2057\langfe5129\langnp2057\insrsid14506983 }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 (Paper by Michael Quinlan on \lquote Insurance Policies Wording and Interpretation \endash 1-3 August 2003 FLS Convention. \par }{\lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 \par }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 In Richardson (supra at p.744) Mackay J stated as to when contra proferentem should be applied.}{\lang2057\langfe5129\langnp2057\insrsid14506983 }{ \lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 He said that if the words \'93$1000.00 for any one accident or series of accidents arising out of one cause\'94 is not free from any ambiguity \lquote a construction \lquote contra proferentem\rquote must be applied\rquote .}{\lang2057\langfe5129\langnp2057\insrsid14506983 }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 His Lordship then went on to say what he understands contra proferentem to mean, namely: \par }{\lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 \par }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 That if there is any ambiguity in the language used in a policy, it is to be construed more strongly again st the party who prepared it, that is, in the majority of cases against the company.}{\lang2057\langfe5129\langnp2057\insrsid14506983 }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 A party who proffers an instrument should not be permitted to use ambiguous words in the hope that the other side will understand them in a particular sense and that the C ourt which has to construe them will give them a different sense and therefore where the words are ambiguous they ought to be construed in that sense in which a prudent and reasonable man on the other side would understand them.}{ \lang2057\langfe5129\langnp2057\insrsid14506983 }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 It is important with refere nce to insurance that there should be a tendency to hold for the assured rather than for the company where an ambiguity arises on the face of the policy. \par }{\lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 \par }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 In his book }{\b\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Insurance Law in Australia and New Zealand}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 , Sutton deals with \lquote contra proferentem\rquote rule at p319 (1980).}{\lang2057\langfe5129\langnp2057\insrsid14506983 }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 He said that in }{ \b\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Provincial Insurance Co. Ltd v Morgan}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 [1933] A.C. 240, 252, Lord Wright referred to the \lquote difficulty faced by an assured in fitting together the disjointed parts of the contract of insurance so as to get a true and complete conceptions of what were his rights and duties and what acts on his part might in}{ \lang2057\langfe5129\langnp2057\insrsid14506983 v}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 olve a forfeiture of the insurance\rquote .}{\lang2057\langfe5129\langnp2057\insrsid9175785 \par }{\lang2057\langfe5129\langnp2057\insrsid14506983\charrsid14506983 \par }{\b\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Framing of Policy \par }{\lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 \par }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 How to frame the \lquote policy\rquote has been very well put thus by Lord St. Leonards in }{\b\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Ande}{ \b\lang2057\langfe5129\langnp2057\insrsid14506983\charrsid14506983 rson v Fitzg}{\b\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 erald}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 (1853) 411 L.C. 484 at 510-11: \par }{\lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid13129474 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \'93A policy ought to be so framed that he who runs can read.}{ \lang2057\langfe5129\langnp2057\insrsid14506983 }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 It ought to be framed with such deliberate care, that no form of expression by which, on the one hand, the party assured can be caught, or by which, on the other, the Company can be ch eated, shall be found upon the face of it: nothing ought to be wanting in it, the absence of which may lead to such results.}{\lang2057\langfe5129\langnp2057\insrsid14506983 }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 When you consider that such contracts as this are often entered into with men in humble conditions of life, who can but ill underst and them, it is clear that they ought not to be framed in a manner to perplex the judgment of the first Judges in the land, and to lead to such differences of opinion among them.\'94 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13129474 {\lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 The need to explain the policy to the assured is very important as stated b y His Lordship in Anderson (supra) at p.507 where he spoke of stringent provisions which, \'93 unless they were fully explained to the parties, will lead a vast number of persons to suppose that they have made provision for their families by an insurance on th eir lives and by payment of perhaps a very considerable portion of their income, when in point of fact from the very commencement, the policy was not worth the paper upon which it was written.\'94 \par }{\lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 \par }{\b\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Insurer\rquote s duty \par }{\lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 \par }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 The insurer\rquote s duty are clearly stated }{\lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 by Sutton (supra at p320) thus:}{ \lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par }{\lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid13129474 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \'93 Since the insurer has the matter in his own hands, since he frames his own policies and words his own questions, and makes his own stipulations, he must be bound to the exact language u}{\lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 sed in the contract documents. }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 It is his bus iness to see that precision and clarity are attained and if he fails in this, any ambiguity is resolved by adopting the construction most favourable to the assured in accordance with the maxim \lquote verba chartarum fortius a}{ \lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 ccipiuntur contra proferentem\rquote .}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 In other words, the contract of insurance is strictly construed against the pers}{ \lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 on (the insurer) relying on it.}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 If a question is in a proposal or the language of a warranty or the wording of a condition or other term in the policy is ambiguous or obscure or unc ertain in application or misleading, it must be construed against the insurer who has drawn the policy and has inserted the question or term for his own protection.\'94 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 \par }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 In a case where it is clear that the relevant provision has only one meaning the clause prevails, but if it is open to two constructions it is for the Court to construe that condition \lquote contra proferentem\rquote , that is, in the sense in which a prudent and reasonable assured would understand the words used, (}{\b\i\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Robinson v Evans Bros. Pty Ltd}{ \lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 [1969] V.R. 885, 895). \par }{\lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 \par }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 As has been said, the rule exists only \'93 for the purpose of removing a doubt, not for the purpose of creating a doubt or magnifying an ambiguity, when the circumstances of the case raise no difficulty\'94. [}{\b\i\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Cornish v Accident Insurance Co}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 . (1989) 23 QBD 453, 456]. \par }{\lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 \par }{\b\lang2057\langfe5129\langnp2057\insrsid13129474\charrsid14506983 G. }{\b\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 CONCLUSION \par }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par To conclude, for these reasons and on the authorities I find that the intention in this case is clear and there is no ambiguity.}{\lang2057\langfe5129\langnp2057\insrsid14506983 }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 The insurer has not \'93expressly\'94 limited its liability as submitted by counsel for the defendant.}{\lang2057\langfe5129\langnp2057\insrsid14506983 }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 So, in this case where several persons are injured, the liability of the insurer is measured by the specified maximum for each injured passenger and the plaintiff (assured) will have no right to claim a larger indemnity in the case of each injured person. \par }{\lang2057\langfe5129\langnp2057\insrsid12780675\charrsid14506983 \par }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Although I find there is no ambiguity in the construction of the said section 6 in the policy, but if, I am found to be wrong in that regard, then the document must be construed contra proferentem which means to say against the defendant who put the language of sections 6 in the document upon which it is relying and upon which anybody relies.}{\lang2057\langfe5129\langnp2057\insrsid14506983 }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 As was said by Willes J in }{ \b\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Fitton v Accidental Death Insurance Co}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 (1864) 17 CBNS 122 at 135: \par }{\lang2057\langfe5129\langnp2057\insrsid12780675\charrsid14506983 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid12780675 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \lquote it is extremely important with reference to insurance, that there should be a tendency rather to hold for the assured then for the company, where any ambiguity arises upon the face of the policy.\rquote \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid12780675\charrsid14506983 \par }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 In }{\b\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Simmonds v Cockell}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 [1920] 1 KB 843 at 845 Roche J said: \par }{\lang2057\langfe5129\langnp2057\insrsid12780675\charrsid14506983 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid12780675 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \'93It is a well known principle of insurance law that if the langu age of a warranty in a policy is ambiguous, it must be construed against the underwriter who has drawn the policy and has inserted the warranty for his own protection.\'94 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid12780675\charrsid14506983 \par }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Although cases have been referred to and interpretation given, the terms and words used are not always identical to those construed in an earlier case or else differ on immaterial details.} {\lang2057\langfe5129\langnp2057\insrsid14506983 }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 It has been stated that \'93 authorities may determine principles of construction, but a decision upon one form of words is no authority upon the construc}{\lang2057\langfe5129\langnp2057\insrsid6754571\charrsid14506983 tion of another form of words.\'94}{ \lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 (}{\b\i\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Re Coleman\rquote s Depositories Ltd and Life and Health Assurance Ass}{ \lang2057\langfe5129\langnp2057\insrsid6754571\charrsid14506983 .}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 [1907] 2 K.B. 798). \par }{\lang2057\langfe5129\langnp2057\insrsid6754571\charrsid14506983 \par }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 As }{\b\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 MacGillivray on Insurance Law}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 9th Ed (1997) states at p265: \par }{\lang2057\langfe5129\langnp2057\insrsid6754571\charrsid14506983 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid6754571 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \'93It must, indeed, be borne in mind that a clause cannot be said to be \'93preci sely similar\'94 to another unless its context is the same.}{\lang2057\langfe5129\langnp2057\insrsid14506983 }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Words are always to be construed in their context, and a difference in context will often afford valid grounds for distinguishing an earlier decision, though it dealt with words which also occur in the policy under consideration.\'94 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid6754571\charrsid14506983 \par }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Bearing the above statements, }{\b\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Richardson}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 case (supra) and other cases can be distinguished.}{\lang2057\langfe5129\langnp2057\insrsid14506983 }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Earlier cases were dealt with on their particular facts and in the conte}{ \lang2057\langfe5129\langnp2057\insrsid6754571\charrsid14506983 xt in which}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \lquote accident\rquote or \lquote accidents\rquote occurred. \par }{\lang2057\langfe5129\langnp2057\insrsid6754571\charrsid14506983 \par }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Further to what I have stated hereabove in the construction of policies, it is permissible to imply a term and this is expressed very succinctly by }{ \b\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 MacGillivray}{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 (ibid at 269) thus and it is apt: \par }{\lang2057\langfe5129\langnp2057\insrsid6754571\charrsid14506983 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid6754571 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \'93Where a policy does not by its express terms cover a situation which has arisen, it is permissible to imply a term which does cover those facts if either the proper inference from the reading of the policy as a whole is that the parties would have so expressed themselves if they had addressed their minds to the possibility of those particular facts arising, or on the grounds that it was necessary for the business efficacy of the contract.}{\lang2057\langfe5129\langnp2057\insrsid14506983 }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 A court will not imply a term into a contract merely because the contract might be considered more reasonable as a result, but no term will be implied unless it is reasonable.\'94 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid6754571\charrsid14506983 \par }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 For the reasons given and the authorities referred to above by me the plaintiff succeeds in its applications to be indemnified by the defendant under the plaintiff\rquote s comprehensive Motor Vehicle Insurance Policy No. 0075543 over its bus registration No. CP433 for passenger risk liability up}{\lang2057\langfe5129\langnp2057\insrsid14506983 }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 to a maximum amount of $100,000.00 in respect of each claim arising out of the said road accident on 3 May 1996 as prayed in item (i) of the originating summons. \par }{\lang2057\langfe5129\langnp2057\insrsid6754571\charrsid14506983 \par }{\b\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 ORDERS \par }{\lang2057\langfe5129\langnp2057\insrsid6754571\charrsid14506983 \par }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 It is orde red that the defendant indemnify the plaintiff as in item (i) of the originating summons And it is further ordered that the defendant indemnify the plaintiff against the interlocutory judgment entered against the plaintiff in Civil Action Nos. 206/97 and 207/97 at the High Court, Suva and against all damages assessed thereunder and all costs to the limit of $100,00.00 in each case.}{\lang2057\langfe5129\langnp2057\insrsid14506983 }{\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 Costs are awarded against the defendant in the sum of $500.00 to be paid to the plaintiff\rquote s solicitors within 14 days. \par \par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid6754571 {\b\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 D. Pathik \par Judge \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12014613 {\lang2057\langfe5129\langnp2057\insrsid9175785\charrsid14506983 \par At Suva \par 31 August 2004 \par }}