Contents of Section

Chapter:

548 PDFTitle:MERCHANT SHIPPING (LOCAL VESSELS) ORDINANCEGazette Number:24 of 2005; L.N. 282 of 2006
Section:23GHeading:Supplementary provisions relating to duty of insurers under section 23FVersion Date:02/01/2007


(1) No sum shall be payable by an authorized insurer under section 23F(1) in respect of any judgment—

        (a) unless before or within 7 days after the commencement of the proceedings in which the judgment was given, the authorized insurer had notice of the bringing of the proceedings; or
        (b) so long as execution on the judgment is stayed pending an appeal.
(2) No sum shall be payable by an authorized insurer under section 23F(1) in connection with any liability, if—
        (a) before the happening of the event which was the cause of the death or bodily injury giving rise to the liability, the policy of insurance was cancelled by mutual consent or by virtue of any provision contained in the policy; and
        (b) either—
          (i) before the happening of the event, the policy was surrendered to the authorized insurer or the policy holder made a statutory declaration stating that the policy had been lost or destroyed; or
          (ii) after the happening of the event, but before the expiration of a period of 14 days from the taking effect of the cancellation of the policy, the policy was surrendered to the authorized insurer or the policy holder made such a statutory declaration.
(3) Subject to subsection (4), no sum shall be payable by an authorized insurer under section 23F if in an action commenced before, or within 3 months after, the commencement of the proceedings in which the judgment was given, he has obtained a declaration that—
        (a) apart from any provision contained in the policy, he is entitled to avoid it on the ground that it was obtained by—
          (i) the non-disclosure of a material fact; or
          (ii) a representation of fact which was false in a material particular; or
        (b) if he has avoided the policy of insurance on the ground described in paragraph (a)(i) or (ii), he was entitled so to do apart from any provision contained in it.
(4) An authorized insurer who has obtained a declaration referred to in subsection (3) shall not thereby become entitled to the benefit of that subsection as respects any judgment obtained in proceedings commenced before the commencement of that action unless he complies with the requirement specified in subsection (5).
(5) The requirement referred to in subsection (4) is that before or within 7 days after the commencement of that action, the authorized insurer—
        (a) has given notice of the action to the person who is the plaintiff in the proceedings; and
        (b) has specified in the notice the non-disclosure or false representation on which he proposes to rely.
(6) Any person to whom notice of an action is given under subsection (5) shall be entitled, if he thinks fit, to be made a party to the action.
(7) In this section, “material” (具關鍵性) means of such a nature as to influence the judgment of a prudent insurer in determining whether he will take the risk, and, if so, at what premium and on what conditions.
(Added 24 of 2005 s. 9)