LIABILITY OF INSURER UNDER A POLICY QUOTES

Today's case on Nigerian Insurance Court Cases blog:

ISSUES:
Insurance policy; motor vehicles (third party insurance) act 1958.
Liability of insurer under a policy under the act.

Suit FSC.24/1957 between Azukemu and Nnajuba In Nigeria on the 30th of december, 1957 before Foster Sutton FCJ.
PRINCIPLES:
A policy insured under section 6 subsection 1 of the motor vehicles (third party insurance) act cannot cover the liability in respect of death or other bodily injury to persons being carried in or upon or entering or getting on to or alighting from the motor vehicle at the time of the occurrence of the event out of which the action arose unless such vehicle is a passenger vehicle or where persons are carried by reasons of or in pursuance of a contract of employment.
QUOTES:

"The learned trail judge may have been misled by the words to be found on the certificate of insurance, exhibit "D4" limitations as to use: use in connection with the policy holder's business, while the vehicle is being so used the carriage of passengers (other than for hire or reward) is permitted"

Construing them to mean that injury to a passenger on the vehicle, not proved to have been carried for reward, was covered but I do not think that is the construction to be placed upon them. All I understand those words to mean is that if an accident, loss or liability occurs while the insured vehicle is being used to carry passengers, other than for hire or for reward, the insured will still be entitled to indemnity in respect as of any actual risk covered by the policy. In other words, they relate to the user permitted, not to risk covered by the policy of insurance.
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