SCHOOL OF LAW

L 210 – INSURANCE LAW

FINAL EXAMINATION

7 DECEMBER 2012

14:00 – 17:00

TIME ALLOWED: 3 HOURS PLUS 5 MINUTES READING TIME

INSTRUCTIONS TO CANDIDATES

1. Check that you have the correct examination paper in front of you.

2. The paper consists of six (6) questions. Answer Question 1 (one) which is
compulsory and carries 40 marks and any other three (3) questions which
carry 20 marks each.

3. Write down the number of questions attempted on the cover page.

4. Begin each question on a new page.

5. Candidates are permitted to bring their own clean and unmarked statutes into
the examination room.

6. There shall be no form of any communication between students during the

examination. Any attempt to make such communication will lead to
disqualification.

DO NOT TURN THIS PAGE UNTIL TOLD TO DO SO BY THE INVIGILATOR

QUESTION 1

You are a newly employed Assistant Advocate working for a firm practising under
the name and style of Messrs Etambuyu Lukaki Suwalanji & Partners. The senior
Partner of the firm,Mr Abwino Clinton Suwilanji has requested you to meet a client,
Mr Sikumba Anamela, who is a renowned tycoon and has just bought a fleet of
public service luxury buses under the name TIYETIYE LUXURY TRAVELLER. Mr.
Anamela’s late father was a prominent businessman in the early 1980s and like his
son used to run a fleet of buses that transported passengers between Lusaka and the
Copperbelt. Mr Anamela (senior) reportedly had a bitter dispute with his insurers
over premiums resulting in the cancellation of all his policies as he did not want to
have anything to do with insurers whom he deemed “good for nothing chaps”. The
cancellation unfortunately happened during the Christmas festive period and a
mysterious fire gutted the entire fleet of buses and Mr Anamela (senior) died out of
depression. Mr Sikumba Anamela informs you that because of what had happened
to his late father he has vowed never to have any dealings with insurers. Advise him
on the following matters:

(a) He tells you that he wants to launch TIYETIYE LUXURY TRAVELLER within
a month but does not want to take up insurance cover with any insurance
company as in his view this is a “small” issue. Advise him on his concerns
clearly outlining possible options, if any and the consequences for non
compliance. [10 marks]

(b) He informs you that on a recent trip to the United Arab Emirate, he had
bought his father in law a motorised scooter. He informs you that although
the manufacturers have expressly indicated that the scooter is not to be used
on public roads the Road Transport and Safety Agency (RTSA) officials
appear to think otherwise. He further tells you that the RTSA officials have
indicated that similar types of motorised scooters mainly made in India are
commonly used around Kamwala shopping centre. He firmly believes that
the RTSA officials are wrong and that there is no justification for demanding a
motor insurance cover for such a scooter. Advise him. [10 marks]

(c) He further asks you to explain to him what the doctrine of uberrimae fidei
means and its relevance in an insurance contract. [10 marks]

(d) Mr Anamela wants to know whether insurance is mandatory for government

owned buses. Advise him [10 marks]
QUESTION 2

(a) What are the facts of the case of HARRIS V POLAND [1941] 1KB 462 and
what principle does it set? [10 marks]

(b) Outline the major differences between a marine and non marine insurance
contract. [10 marks]

QUESTION 3

(a) What form does the Insurance Act No. 27 of 1997 prescribe for insurance
contracts?[5marks]

(b) What are the facts of HEBDON v WEST (1863) 3 B & S 579 and what principle
does it set? [10 marks]

(c) Explain the proximate cause rule with reference to relevant authorities. [5
marks]

QUESTION 4

(a) Explain the following terms:-

(i) Subrogation; [2 marks]

(ii) Abandonment; [2 marks]
(iii) Parol evidence rule; [2 marks]
(iv) Contra proferrentem rule and; [2 marks]
(v) Fire [2 marks]

(b) According to Mance LJ in AGAPITOS v AGNEW [2002] LLOYD’S REP I.R 573
what are the five (5) categories of fraud?[10 MARKS]

QUESTION 5

You work for a firm rejoicing under the name and style of Messrs Romance Colleen
Cox & Partners and you have just received a file from a Lusaka based insurance
company that want to be advised on the following:

(a) The company has just paid K400 million in respect of a claim in which their
insured client was involved in a road traffic accident. The motor vehicle was a
“write off”. The file contains a copy of a police report in which a third party
 was held liable for the accident and paid an admission of guilt fine. The
company wants to find out if it is possible to recover what has been spent on
settling the claim. Advise the company clearly specifying the procedures for
recovery where applicable.[10 marks]

(b) The company representative, Mr Sepo Mutaka tells you that he came across
the term “material circumstance” and is wondering what the term means.
Advise him.[5 marks]

(c) Mr Sepo Mutaka further informs you that when taking up a comprehensive
motor insurance policy one of the clients had not informed the company that
his place of abode, Chibolya in the city of Lusaka was crime prone. With the
aid of relevant authorities advise whether or not the client is obliged to do
this.[5 marks]

QUESTION 6

“It hath been found by experience, that the making of insurances, interest or no
interest, or without further proof of interest than the policy, hath been productive of
many pernicious practices, whereby great number of ships, with their cargoes,
have...been fraudulently lost or destroyed.” Discuss with the aid of relevant
authorities. [20 marks]

END OF EXAMINATION PAPER