CHAPTER ONE
NATURE AND DEFINITION OF INSURANCE
1.0 INTRODUCTION
1.1 DEFINITIION
1.2 HISTORICAL DEVELOPMENT OF INSURANCE IN NIGERIA
1.3 NATURE OF INSURANCE CONTRACT
1.4 CONCLUSION
CHAPTER TWO
SOME AND FUNDAMENTAL PRINCIPLES OF INSURANCE UNDER THE NIGERIAN LAW OF INSURANCE
2.0 INTRODUCTION
2.1 UTMOST GOOD FAITH
2.2 INDEMNITY
2.3 SUBROGATION
2.4 PROXIMATE CAUSE
2.5 NO PREMIUM, NO POLICY
2.6 CONCLUSION
CHAPTER THREE
THE PRINCIPLE OF INSURABLE INTEREST UNDER THE NIGERIAN LAW OF INSURANCE
3.0 INTRODUCTION
3.1 ORIGIN OF INSURABLE INTEREST
3.2 DEFINITION OF INSURABLE INTERST
3.3 INSURABLE INTEREST AS A MEASURE OF RECOVERY
3.4 NECESSITY OF INSURABLE INTEREST
CHAPTER FOUR
4.0 CLASSIFICATION OF INSURABLE INTEREST
4.1 TIME FOR INSURABLE INTEREST
4.2 INSURABLE INTEREST IN PROPERTY
4.3 INSURABLE INTEREST IN LIFE INSURANCE
4.4 INSURABLE INTEREST IN GOODS
4.5 INSURABLE INTEREST IN LAND AND BUILDING
4.6 EFFECT OF LACK OF INSUURABLE INTEREST
CHAPTER FIVE
5.0 APPLICATION OF INSURABLE INTEREST
5.1 WHAT DISTINGUISHES INSURABLE INTEREST FROM OTHER FORMS OF INSURABLE CONTRACT
5.2 CONCLUSION
CHAPTER SIX
6.0 GENERAL CONCLUSION
6.1 RECOMMENDATION
6.2 BIBLIOGRAPHY
TABLE OF CASES
INDIA
Duraiswamy Iyengar C. v United India Life Assurance Co. AIR 1956 Mad 320: (1956) 1 Mad LJ 344
Ward v Carttar [1865] LR 1 Eq 29. pg 31
KENYA
Stockdale v Dunlop [1840] 6 M & W 224
NIGERIA
Adefuye v. Royal Exchange Assurance (1962) LLR 43
Akpata and Garrick v. African Alliance Co. Ltd (1967) NWLR12
Irukwu v. TIMB [1997]12 NWLR 17
Kayode v. Royal Exchange Assurance (1955-56) W.R.NL.R. 154).
Law Union and Rock Insurance Ltd v. Onuoha [1998] NWLR (pt 555) 576 at 588
UNITED KINGDOM
Berker Gray v. London Assurance (1918) A.C. 101, 112 per Lord Summer.
BOAG v. Standard Marine Insurance Co. Ltd (1971) 2 K.B. 113
Carter V. Boehm [1766] 3 Burr 1905
Castellian v Preston [1883] 11 QBD 380 @ pg. 397
Ebsworth v Alliance Marine Insurance Co[1873] LR 8 CP 596 @ pg 638
Ettrick v. Hunter, [1993] 1 All E.R. (H.L.) per Lord Goth.
Gordon v. Gordon [1812]3 Swan 408 companies.
Griffith v Fleming [1909] 100 LT 765: [1909] 1 KB 805: [1908-10] All ER 760 CA
Hebdon v. West (1803) B & 579
Hedley Byrne & Co Ltd v. Heller & Co Ltd
Joseph v Law Integrity Insurance Co. [1912] 2 Ch 581
Lee v. Jones [1864] 17 KB 482
Lloyd v Fleming [1872] LR 7 QB 299
London Assurance Co. v. Mansel (1879)11 Ch. D. 363
Mark Rowlands Ltd v Berni Inns Ltd [1986] 1 QB 211, 227.
Prudential Insurance Co. v. Inland Revenue Commissioner (1904) 2 K. B. 658 at p. 663.
Reed v. Royal Exchange Assurance Co.[1795] Peake Add Cas 70
Sadlers Co. V. Badcock (1743)2 ATK 554
Samuel v. Pumas (1924) A.C. 431
Siu Yin Kwan and another v Eastern Insurance Co Ltd [1994] 2 AC 199
Yorkshire Insurance Co. Ltd. v. Nisbet Shipping Co. Ltd., [1962] 2 Q.B. 330 at 339
UNITED STATES OF AMERICA
Collingridge v Royal Exchange Assurance Corpn. [1877] 3 QB 173: 47 LJ QB 32: 37 LT 525
Gossett v. Farmers Ins. Co. of Wash., 948 P.2d 1264, 1272
Seagrave v Union Marine Insurance Co [1866] LR 1 CP 305
Sellers v Continental Insurance Co [1974] 48 DLR (3d)369, NS App Div
Sparkes v Marshall [1836] 2 Bing NC 761.
Studio Frames Ltd. v. The Standard Fire Ins. Co., 483 F.3d 239, 245
Sutherland v Pratt [1843] 11 M&W 296
Technical Land, Inc. v. Firemen’s Ins. Co. of Washington, D.C., 756 A.2d 439, 447
TABLE OF STATUTES
INDIA
Marine Insurance Act, 1963
NIGERIA
Cap 128 of the Laws of the Federation, (1958)
Insurance Act 2003
Insurance Companies Act, 1961, Cap. N53 vol. 7 LFN 2004
Insurance Decree of 1991
Insurance Decree, 1997
Motor Vehicle (Third Party Insurance) Act, (1950)
The marine Insurance Act 1961
UNITED KINGDOM
Central Services Act (1986)
Partnership Act (1890)
Life Assurance Act 1774
Marine Insurance Act, 1906
UNITED STATES OF AMERICA
California Commercial Code § 2501
INTERVIEWS AND PERSONAL COMMUNICATION
Wale Onaolapo (MD/CEO), Sovereign Trust Insurance Plc. A paper delivered at the 6th Practical Maritime Dispute Resolution Seminar. Lagos, Nigeria: May 22, 2014
Mr. Remi Olowude, Executive Vice Chairman, Industrial and General Insurance (IGI) in an interview with the Guardian; Thursday, December 13, (2007). p. 45
The Nigerian Council of Registered Insurance Brokers (NCRIB) via its President, Chief Dede Ijere, while lauding the actions taken by the National Insurance Commission (NAICOM) on Recapitalization process at the December edition of NCRIB members evening in Lagos. The Guardian, Thursday, December 13, (2002). p 45.
MD/CEO Equity Assurance Plc an the Chairman, Nigerian Insurance Association (NIA) in an interview with the Guardian op. cit. at p. 44.
LIST OF ABBREVIATIONS
A.C. Appeal Cases
All Com All Commercial
ATK Atkyn’s Reports, Chancery
Burr Burrow
C.P Common Plea
Cap Chapter
Ch. D Chancery Division
Co. Company
E.R England Reports
F.N.L.R Federal Nigeria Law Reports
Ins. Insurance
K. B King’s Bench
L.J Live Journal
L.L.R Lagos High Court Reports
L.R Law Reports
Lloyd’s Rep Lloyd’s List Law Reports
LT Learn the truth
Ltd Limited
MLR Modern Law Report
N.M.L.R Nigeria Monthly Law Report
NCRIB Nigeria Council of Registered Insurance Brokers
NWLR NWLR Nigerian Weekly Law Report
Par Paragraph
Q.B.D Queen’s Bench Division
QB Queen’s Bench
UCC Uniform commercial code
W.R.NL.R Western Nigeria Law Report
CHAPTER ONE
NATURE AND DEFINITION OF INSURANCE
1.0 INTRODUCTION
Risk and uncertainty are incidental to life. Man may meet untimely death. He may suffer from accident, destruction of property, fire, floods, earthquakes and other natural calamities. Whenever there is uncertainty, there is risk as well as insecurity. People always want to avoid the financial consequences of these risks e.g replacing personal property that is lost or damaged. Insurance exists because risk exists. Insurance cannot remove the risk or the likelihood that one might become a victim of risks, but it ensures the transfer of all or some of the financial impact.
Insurance is a contract between two parties (insurance company (A) and the insured or policyholder (B) in which the risk is transferred to the insurance company in exchange for the payment (in advance) of a token called Premium with the insurance company agreeing to make good the loss to the policy holder whenever he suffers any loss. 1
Social and economic changes open up new areas in which insurers are called upon to provide insurance coverage. Apart from natural risks to life, the risks to life from coups, kidnapping and political assassinations have become