New India Insurance Co. Ltd. v. Ali Saleh Foto. Civ. App. 29-D-67, 19/10/68, Duff, J.

New India Insurance Co. Ltd. v. Ali Saleh Foto. Civ. App. 29-D-67, 19/10/68, Duff, J.

The respondent’s motor cycle was involved in an accident. At the time, it was being driven by the holder of a provisional licence who had been given permission to drive the motor-cycle. There was a passenger on the pillion seat. The respondent claimed damages from the appellant insurance company repudiated liability claiming that the vehicle was not being driven by an “authorized person” within the meaning of clause in the insurance policy. “Authorized person” included a person driving with the insured’s permission, but only if he was permitted to do so by law.

            Held: (1) s. 20 (d), Traffic Ordinance, Cap. 168, the holder of a provisional licence was not permitted to drive a motor cycle carrying a passenger. The driver was therefore not an “authorized person” within the clause, and the policy was avoided as against the insured. (2) (obiter) a restriction on the user of a motor cycle in an insurance policy would not entitle the insurer to avoid the policy as against a third party such as the passenger. (Cited: New Insurance Co. Of India v. Cross (1966) E.A.91, House of Manji v. Liverpool Marine Insurance Co. (1964) E.A. at 693).