Hollard Life Assurance Company Limited v Van der Merwe NO

The deceased concluded a credit life insurance policy with Hollard Life Assurance Company Ltd, linked to a motor vehicle instalment sale agreement with Wesbank. He ceded all his rights under the policy to Wesbank as security for the outstanding debt. A few weeks later, the deceased accidentally shot himself with his own firearm and died while still indebted to Wesbank. Hollard repudiated the claim relying on an exclusion clause for suicide or self-inflicted injury, whether intended or not. The executor of the deceased estate sued Hollard for payment under the policy.

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

The case is an important authority on the interpretation of exclusion clauses in South African insurance law, confirming that clear policy wording excluding unintentional self-inflicted injuries will be enforced. It reaffirms orthodox principles of contractual interpretation, the restrictive interpretation of exclusions without rewriting them, and the insurer’s right to define covered risks.