Scottish Court of Session Decisions

Subject_1 DECISIONS of the LORDS OF COUNCIL AND SESSION, reported by SIR DAVID DALRYMPLE, LORD HAILES.
Subject_2 INSURANCE.
Subject_3 The proprietors of three ships procured an insurance on all of them. Before the result of the voyage was known, but, after one of the ships arrived at its destined port, the underwriter became bankrupt. On the safe arrival of the whole ships, his creditors raised an action against the insured for payment of the premium. The Court sustained the defence, that, by the underwriter's bankruptcy, he becoming unable to fulfil his engagement, the insured were entitled, for their own security, immediately to re-insure.

Henry Riddel and John Campbell, Trustees of Dr Elliot,
v.
William Morrison and Company

Date: 28 June 1785

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[Fac. Coll. IX. 342; Dict. 7118.]

Braxfield. If the insured cannot, in case of loss, operate payment from the insurer, he may secure himself by re-insurance; the creditors of the insurer may, however, offer to find security for making good the loss; and, in that case, the insured will be bound for the premium; but then the offer must be instantly made.

President. At the time of the bankruptcy no premium was paid. It is for the benefit of all concerned to hold the bargain at an end. Had the premium been actually paid, there would have been more difficulty for them: the contract would so far have been implemented.

On the 28th June 1785, “The Lords assoilyied the defenders;” adhering to the interlocutor of Lord Eskgrove.

Act. A. Campbell. Alt. R. Blair.