ENOCH YEMOAH & 2 OTHERS v. STATE INSURANCE COMPANY
2015
COURT OF APPEAL
GHANA
CORAM
- MARFUL-SAU, J.A. (PRESIDING)
- KORBIEH, J. A.
- TORKORNOO, J. A.
Areas of Law
- Insurance Law
- Civil Procedure
- Contract Law
2015
COURT OF APPEAL
GHANA
CORAM
AI Generated Summary
The plaintiffs (Respondents) were injured in a car accident and obtained a default judgment against the driver and insured. The insurer (Appellant) was then sued for the judgment award but contested, claiming the driver had a fake license. The trial court granted summary judgment in favor of the Respondents. On appeal, the Appellant's arguments were rejected, and the trial court's decision was upheld, emphasizing the insurer's duty to satisfy judgments under Section 8 of the Motor Vehicles (Third Party Insurance) Act 1958.
TORKORNOO, J. A:
Section 8 of the Motor Vehicles (Third Party Insurance) Act 1958, (No.42 of1958) reads
SECTION 8 - Duty of insurers to satisfy judgments
(1) Where after a certificate of insurance is delivered under subsection (6) of section 4 to the person by whom a policy has been effected, judgment in respect of the liability as is required to be covered by a policy issued under paragraph (b) of subsection (1) of section 4, which is a liability covered by the terms of the policy, is obtained against a person insured by the policy then, although the insurer may be entitled to avoid or cancel or may have avoided or cancelled the policy, the insurer shall subject to this section, pay to the persons entitled to the benefit of the judgment of the sum of money payable in respect of the liability including the sum payable in respect of costs and the sums payable by virtue of an enactment in respect of interest on that sum or judgment (emphasis mine).
(2) A sum of money shall not be payable by an insurer under subsection (1)
a. In respect of judgment, unless before or within fourteen days after the commencement of the proceedings in which the judgment was given, the insurer had notice of the bringing of the proceedings;
b. In respect of a judgment so long as execution on the judgment is stayed pending appeal; or
c. In connection with a liability, if before the happening of the event, which was the cause of the death or bodily injury giving rise to the liability, the policy was cancelled by mutual consent or by virtue of a provision contained in the policy and
i. Before the happening of that event the certificate of insurance was surrendered to the insurer, or the person to whom the certificate of insurance was delivered made a statutory declaration stating that the certificate of insure acne had been lost or destroyed and so could not be surrendered; or
ii. After the happening of that event, but before the expiration of fourteen days from the taking effect of the cancellation of the policy, the certificate of insurance was surrendered to the insurer, or the person to whom the certificate of insurance was delivered made a statutory declaration that the certificate of insurance had been lost or destroyed and so could not be surrendered; or
iii. Either before or after the happening of the event or within a period of fourteen days from the taking effect of the cancellation of the policy, the insurer had commenced proceedings under this Act in respect of t