Certain Underwriters of Lloyds of London v Harrison

The respondent insured a Toyota Land Cruiser with the appellants. After the vehicle overturned in an accident, the respondent claimed indemnification under the policy. The insurers repudiated the claim, alleging non-disclosure of a material fact: that the vehicle had been imported unlawfully into South Africa without an import permit and was therefore liable to forfeiture. Evidence showed the vehicle entered via Swaziland, was irregularly registered using a discontinued system, and that no import permit had been issued. The respondent’s husband, who arranged the insurance and was experienced in vehicle importation, likely knew of the unlawful importation but did not disclose it.

The appeal was upheld with costs. The order of the High Court was set aside and replaced with an order dismissing the plaintiff’s claims with costs.

The case reaffirms South African principles on material non-disclosure in insurance law, particularly the objective test of materiality and the imputation of an agent’s knowledge to the insured. It confirms that unlawful importation of insured property is a material fact, as it affects risk assessment and public policy considerations.