THE OPEN UNIVERSITY OF TANZANIA FACULTY OF LAW OLW 304 INSURANCE LAW OF EAST AFRICA REVISED COURSE OUTLINE WITH REFERENCES PART I: THE LAW AND PRACTICE OF COMMERCIAL INSURANCE CHAPTER I Introductory: A: B: (i) Technical Terminology: (ii) Coverage of course - See main Heads of this outline. The Historical Origin Development and Function of Insurance Business (Law and Practice): (i) (ii) Pre-capitalist arrangements and schemes of socioeconomic security and their economic bases in the world: - Mutual Aid Practices,. Religious/veteran and civilian mutual aid (burial) clubs and guilds; Bottomry and Respondentsia (and other sea-loan contracts). - The Law Merchant and Insurance Law and Practice in Western Europe generally and in England in particular: - Early beginnings of modern (Marine) insurance in North Italy, Flandors, and Barcelona: 13th - 15th Century Insurance in England up to 14th Century Codification and enactment of Insurance Law on the continent of Europe Insurance in the era of Mercantile (Commercial capitalism in England - Primitive accumulation of Capital in Western Europe: The Triangular (Slave & Ivory) Trade and the development of Marine Insurance. 1 (iii) (iv) - Genesis and development of modern Fire Insurance and Life assurance in England up to 1750s. - Feudal monopolist corporate insurance business Law and practice. (The English Bubble Act, 1720). - The Lloyd's system of individual underwriters (Marine). - State Regulation of insurance business - Evolution of modern Marine (Lloyd's) policy. - Form and content of Insurance Markets: Localised - main centres same as those of commerce and industry. Insurance and Industrial Capitalism England. - Development of Partnership and Joint stock Insurance companies: Non-Marine, 1680s onwards: Marine 1824 onwards. - State Regulation of Insurance, and Statutory Law of Insurance underwriting of Industrial, transport, commercial building resks, Fire and Accident Insurance. - Merger of Law Merchant with common law - Lord Mansfield (1756) and beyond: Development of Modern English Law of Insurance. - Insurance Business-Growth of Organization and Market. Insurance and Finance Monopoly Capitalism. - Emergence of Monopoly Cos. In Insurance as aspect of Monopoly or Finance Capital. - Nature of Insurance Business in the classical and neo-colonies (Third World) Contrasted with its nature in the capitalist Metropolis: Establishment of Colonial Branch. Insurance Business as part of export of Finance Capital and its operation worldwide. - Colonial Insurance Business Law and practice - E.A. as example - Role of Insurance Business in Capitalist/imperialist economics contrasted with its role in the "Third World" - General aspects with E.A. as example. 2 Readings: Books 1. Mandel, Marxist Economic Theory, Chapter 4 pp 95-127 Chs. 12 & 13 pp. 396-481. 2. Paul M. Sweezy, The Theory of Capitalist Development Chapters xiv, xv and xvi. 3. C. F. Thenerry The Origin and Early History of Insurance Including the Contract of Bottomry. 4. W. Holdsworth, A History of English Law, Vol. 5, pp. 65 et seq. vol. 8, p. 273-298. 5. G. Stefani, Insurance in Venice Vol. I 6. G. Clayton, British Insurance, Chapters I-V. 7. Harold E. Raynes, INSURANCE Chapter 1 & 2 pp. 1-30. 8. Robert I. Mehr & Commack, Principles of Insurance Chapter. 31. 9. Vance, on Insurance (Second Edn.) pp. 1-21; 51-57. 10. Encyclopaedia Britannica, Vol. 12, pp. 454. 11. W. Rodney: How Europe Underdeveloped Africa, p. 162-199. 12. Who controls Industries in Kenya. Pp. 179-85. Articles: 13. F. E. de Roover, Early Examples of Marine Insurance J. Econ. Hist. (1945), Vol. 5 p. 14. Vance, The Early History of Insurance Select Essays in AngloAmerican Legal History Vol.3, Essay No. 56 pp. 98-116. 15. Issa Shivji, Insurance and Development: E. A. L. Rev. Vol. 3 No. 1 16. N. Songuemas, Precursor of The Beveridge Plan? Social Security among Traditional Societies in Africa, E. A. J. May 1968, pp. 13, 18. See also African Social Security No. 3. 3 C: Readings: Books and Articles 1. Cole and Denison Tanganyika, pp. 123: 181; 238. (For Tanganyika's "Reception Clause"). 2. Morris & Read, Uganda, pp. 237-244, 250-253 (for Uganda "Reception Clause"). 3. Ian R. Mecneil, "Research in East African Law, 3 (1) E.A. Law Journal, p. 47. 4. Allot, Essays in African Law, (1961) pp. 3-10. Cases (Especially those with a star). 5. Sat Dev. Sharma v. Home Ins. Co., (N.Y.) [1966] E.A. 9. 6. Nathanlal Baghvji Lakhani V. H. J. Vaitha [1965] E.A. 452 (U). 7. Torr V. Davidson 9 E.A.L.R. 170 (K. 1920). 8. Kettles Roy Wilson Ltd. v. Queensland Ins. Co. Ltd. 25. (1) K. L. R. 33. 9. Osman A. Gunny v. Smith Mackenzie & Co. I. Z. L. R. 412. Some Relevant Statutes (Some of which will be referred to in the course of study). (a) TANZANIA MAINLAND: (1) *Insurance (Vesting of interests and Regulation) Act. No. 4 of 1967. (2) *Life Assurance (Control) Ordinance (Cap. 232). (3) *Motor Vehicles Insurance Ordinance (Cap. 169). (4) Carriage of Goods by Sea Ordinance (Cap. 164). (5) Workmen's Compensation (Amendment) Act; 1966 Ss 1 & 13. (6) Companies Ordinance (Cap. 213). (7) Gambling Ordinance (Cap. 19). (8) *Arbitration Ordinance (Cap. 81 & 15). (9) *Arbitration (Foreign Awards) Orders 1930-31. (10) *The Judicature and Application of Laws. (11) (a) The stamps Ordinance (R ) (Cap. 189). 4 (A) (12) (b) Now see The Stamp Duty Act 1972. *Stamp Duties (Stamping of Instruments) Rules, 1949 5 Supp. 57, Vol. 1 of the Laws (T), pp. 58. (13) Pools and Lotteries (Regulation) Act. 1967. (14) Grass Fires Control Ordinance (Cap. 135). (15) Lighting Control Ordinance (Cap. 242). (16) *The Law of Contract Ordinance, 1961 (Cap. 433). (17) Banking and Financial Institutions Acts, 1991. KENYA: 1. *Insurance Companies Act (Cap. 487). 2. *Insurance (Motor Vehicle Third Party Risks) Act (Cap. 404). 3. *Marine Insurance Act, 1968. 4. The Companies Act. 5. Carriage of Goods by Sea Act (Cap. 390). 6. Shipping Act (Cap. 389). 7. *Arbitration Act (Cap. 49). 8. *Arbitration (Foreign Awards) Act (Cap. 50). 9. *Stamp Duty Act (Cap. 480). 10. The Kenya Protectorate Maritime Order in Council 1926 (Applied Laws). 11. Foreign Judgments Enforcement Act (Cap. 43). 12. *(a) The Eastern Africa Protectorate Order in Council, 1897, Art 17(2) (b) The Kenya Independence Order in Council 1963, Art. 4(1). (c) (Now see) Jurisdiction of Court & Pending Proceedings 5 Regulations 1963, L. N. 319, and No. 14 of 1965; S. 6(8). 13. B. (C ) Contract Act. (Cap. 23). UGANDA: 1. Insurance Companies Act (Cap. 92, Vol. III p. 1773). 2. Uganda Traffic Ordinance. 1951. 3. *The Traffic and Road Safety Act, 1970. 4. The National Insurance Corporation Act (Cap. 322). 5. (a) The Uganda Order in Council, 1902 Art. 15 (2). (b) The Uganda (Independence) Order in Council, 1962 ss. 2 and 4 (1). (c) (Now See) Law of Uganda, 1964, Cap. 34; S. 2. 6. *The Stamps Act (Cap. 172, Vol. V). 7. The Contract Act (Cap. 55 Vol. II). 8. *Arbitration Act (Cap. 55 Vol. II). 9. *Foreign Judgments (Reciprocal Enforcement) Act, (Cap. 48, Vol,. II). 10. Foreign Investment (Protection Act) Cap. 160, Vol. V). 11. Exchange Control Act, (Cap. 158, Vol. V). ZANZIBAR 1. Zanzibar Gambling Decree, 1909. 2. (a) Zanzibar Order-in-Council, 1924, Art. 24. (b) Zanzibar Decree No. 1 of 1964. CHAPTER II 6 THE NATURE AND SCOPE OF THE CONTRACT OF INSURANCE A. General: (i) the (a) What insurance is claimed to be, theories associated with socio-economic role of insurance. (b) (ii) (iii) (iv) What insurance is really about the objective or true function of insurance. The subject-matter or "the corpus" of the contract. The General principles and characteristics of the insurance contract. (a) Is insurance contract unlike other types of contract? (b) What are the alleged rationale of the principles and characteristics? (c) What are the objectives and practical effects in economic terms of these principles and characteristics; to the insurer; to the insured? Why? Formation of the contract: (a) Proposal by Insured. (b) Cover-note and deposit receipt, and slip. (c) Acceptance: Reasons for non-acceptance? Attachment and expiry of Risk and Consequences thereof. Readings: Books (a) Prescribed. 1. Macaura v. Northern Assurance Co. [1925] AC 619 41 TLR 447. 2. Byamugisha: Insurance Law of East African. 3. Raoul Colinyauz, The Law of Insurance 3rd. Ed.) pp. 3-21. 4. McGellivrary ON INSURANCE, LAW (5th Edn) Ch. 5, pp. 576-684. 5. Vance ON INSURANCE (and Edn.) Ch. 5, pp. 209-295. 7 (b) 6. Harold E. Raynes, INSURANCE, Ch. 7. 7. "Who Controls Industries in Kenya". Recommended: 8. Vance (supra) Ch, 2, pp. 82-114 9. Houseman's Law of Life Assurance 5th Edn. pp. 3-46. 10. J. K. Jones Fire Insurance Law (2nd Edn.) pp. 1-12. 11. Robert L. Mehr & E, Commack PRINCIPLES OF INSURANCE Ch. 1 pp. 3-16; Ch. 6 pp. 106-135. Articles (Recommended) 12. "A New Approach to Mistake in Contract". 28 M.L.R. 265. 13. "The Nature of a Policy of Insurance with Regard to its Assignability: I Harv. L.R. 388. 14. Issa Shivji, "Insurance and Development" 15. Vaidya, "Insurance in Perspective" Cases (All Prescribed) *1. Cartright v. MacCormack, T. INS. Co, Ltd. [1963] I W.L.R. 18. 2 House of Manji Ltd. v. Liverpool Marine Ins Co. Ltd. [1964] E.A. 693. 3. Allinson Njugi v. British India Gen. Ins. Co. Ltd. [1965] E.A. 58. 4. Jupiter Gen. Ass. Co. v. Kassanda Cotton Co. [1966] E.A. 252. 5. Hercules Ins. Co. Ltd. v. Trivedi & Co. Ltd., [1962] E.A. 358. 6. Pyarali Kuverji v. The Br. Indian Gen., Ins. Co. U. L. R. 194. *7. 13. 8. Kettles Roy & Wilson Ltd. v. Queensland Ins. Co. Ltd. 25 (1) K. L. R. Osman Abdul Gunny v. Smith Mackenzie & Co. 1. T. L. R. 412 *9. Raynes V. Preston (1881) L. R. 18, Ch. 9 Div. 1 *10. Pheenix Insurance Co. v. Spooner, (1905) T. L. R. 306 - 753. (B) Parties to the Contract/Policy. 8 (i) (ii) The Insurer - who may Insure (Power of Delegation etc.) - Margin of Solvency System. (a) Local National Insurance Companies (Government owned). (b) Foreign Companies. The Assured - Contractual Capacity Position on Aliens, Infants & Lunatics. - Persons with Limited Interests (To be treated under Chapter III). (a) Trustees and Personal Representative (b) Landlords and Tenants (c) Tenants for Life/Right of Occupancy Holders (T). (d) Mortgagors and Mortgagees (e) Buyers and sellers of goods (f) Bailors and Bailees. Readings: Statutes: 1. Act No. 4 of 1964 (Tanzania) 2. Insurance Cos. Act (Kenya); (3) Insurance Cos. Act (Uganda). Books Prescribed: 1. Byamugisha, INSURANCE LAW OF EAST AFRICA. 2. Preston et al., Chs. 13-15, pp. 189-236. 3. Raoul Colinvaux Ch. 13-15, pp. 330-414 Articles: 9 1. Vaidya "Insurance in Perspective". 2. "Vicarious Liability and the Master's Indemnity" 20 M. L. R. 220 & 437. 3. *"Industrial Insurance" 2 M. L. R., 6. 4. *" Contracts for the Benefit of Third Parties", (1956) J. B. L. 313-14. (J. B. L. = Journal of Business Law). 5. *"Contracts for the Benefit to Third Parties" (1960) J. B. L. 57. Cases (All Prescribed) *1. Marianne Ingrid Winther v. Arbon Langrish & S. Ltd. [1966] E.A. 292. *Societa Coloniale St. etc. v, South Br. Ins. Co. Ltd. 14 K. L. R. 84. 2. *3 Tarlok Singh Nayer v. Sterling Gen. Ins, Co. [1966] E.A. 144. *4. C. A Tomlinson (Hauliers) Ltd. v. Hepburn Ltd. [1966] 2 W. L. R. (1966) A. *5. 451. Sat. Dev. Sharma v. Home Insurance Co. (N.Y.) [1966] E.A. 8. (C) Construction of the Policy - Rules/Theory (i) Construction of Words (ii) Construction of Policy as a Whole Books Prescribed: 1. Preston et. Al. Ch. 2 pp. 25-33 or Rauol Colinveux Ch. 24. 2. MacGillivray Ch. 6, pp. 696 - 728. Cases (All Prescribed) *1. Jupiter Gen. Ins. Co. Ltd. v. R. hasham & Sons [1960] E.A. 592. *2. Nasser Mohamed Omar v. Prudential Assurance Co. [1966] E.A. 79. *3. Boiler Inspection & Insurance Co. of Canada [1951] A.C. 3`19; 1 T. L. R. 497. 4. Sat Dev. Sharma v. home Ins. Co. (N. Y.), Supra & infra. CHAPTER III INSURABLE INTEREST AND WAGERS (LEGAL & ILLEGAL) 10 (i) General Principles - Legislation - Illegal Contracts on Insurance - Wagers (ii) Nature of Insurable Interest: (a) In Property - What constitutes it? - When it must exist. - Necessity of monetary or pecuniary interest therein - Persons with Limited interests (see Chap. 118 (ii) supra). (b) In Lives - Who may take out a policy? - When interest must exist. - Assignee of policy without Insurable interest. Importance of Absolute assignment of the life Assured: notification of insurers; what of legal/equitable effect of conditional assignments? (iii) The alleged function of Insurable Interest: insurance. (iv) Insurable Interest. - Prevention of Wagering in Contradiction in its theory, Contradiction between theory and practice; Compare and contrast: Worthington v Curtis (1875) 1 Ch. D. 419 and The Life Assurance Act 1774. Books (a) Prescribed: *(1) (2) Preston et al., Ch. 3, pp. 34 - or Raoul Calinvaux, Ch. 3. MacGillivray, Ch. 4 Sec. 1 & 2, paras. 361-369; 373-379; 381-379. Sec. 3 Paras. 393-416, 420-421; 437-444; Sec. 4, Paras. 445-450. 11 (3) Byamugisha, Ch. 6. (b) Recommended (4) Vance, Ch.4 pp. 158-208. (5) Houseman's Law of Life Assurance, ch. 2 pp. 15-20 (6) J. K. Jones, Fire Insurance Law Ch. III. (7) Halsubry's Laws, Vol. 22, pp. 277-280, 310-317 Articles: (1) "Principles of Insurable Interest", 3 M. L. R. 281. (2) "Insurance of Limited Interests Against Fire", 11 Harv. L. R. 512. Cases (All prescribed) *1. Wilson. V. Jones (1867) L. R. 2 Ex. 139. 2. R. V. Mohamed Bin Abdullawi et. Al. 1 Z. L. R. 603. 3. Re Shariff Fazal Essa Bankrupt 1 Z. L. R. 268. 4. Suleman Bros. V. Jaffer Mohamed Rashim 1 Z.L. R. 263. *5. Macneil's Mater pp. 1-10. *6. Sat Dev. Sharma v. Home Ins. Co. (N.Y.) [1966] E.A. 8 *7. Lucena v. Craufurd 127 E. R. 63. *8. Macaura v. Northern Assurance [1925] A. C. 619. *9. Worthington v. Curtis. 10. *11. Hebdon v. West. Dalby v. The India & London Life Ass. (Macneil P. 20). CHAPTER IV 12 THE RISK AND LOSS A. (i) Extent of risk and Ordinary Limitations - Nature of Cause of Loss. (ii) run, and Period Covered - when the Insurer is "on risk" or Policy starts to expiry time/date. (iii) Proximity Rule and Consequential Loss Principle (iv) Burden of Proof. Books Prescribed: *1. Preston et al. Ch. 4, pp. 60 - 82 or R. Colinvaux Ch. 4. 2. MacGillivray, Ch. 7 Paras. 729 - 776. 3. Halsbury's Laws, Vol. 22 p. 275 - 277 (Subsec. (3) 300-310. Cases (All Presecribed) *1. Cortright v. MacCormack, Trafalgar Ins. Co. Ltd. [1963] 1 W. L. R. 18. *2. A. Tomlinson (Haouliars) Ltd. v. Hepburn, [1966] A. C. 451. *3. Jupiter Gen. Ins. Co. Ltd. v. R. Hasham & Sons [1966] E.A. 592. *4. Nasser Mohamed Omar v. Prudentila Assurance Co. [1966] E.A. 79. *5. Boiler Inspection & Insurance Co. of Canada v. Sharwin-Wiulliams etc. (Supra). *6. Pyarali Kuverji v. The Br. Indian Gen. Ins. Co. Ltd. 7 U. L. R. 1964 (Supra). Lucena v. Craufurd (1806). *7. Kanti Co. Ltd. v. british Traders Ins. Co. Ltd., [1963] E.A. 409. *8. Societa Coloniale St. et. Al. V. South Br. Ins. Co. Ltd. (Supra). *9. Osman Abdul Gunny v. Smioth Mackenzie & Co. 1. Z. L. R. *10. Shelborune & Co. v. Law Investment & Ins. Corpn. Ltd. (Macneil, 82). 11. B. Brunton v. Marshall 10 LI. L. R. 689. Devices for Defining (Limiting) and Controlling Risk and Loss. 13 (i) Duty of Disclosure (a) The Principle of "Utmost Good Faith". (b) Consequences of Misrepresentation and non-disclosure. (c) Material Facts, what they are. (d) Who bears such Duty? (Jubilee Ins. Co. v. Johns [1965] E. A. 255. (e) Proposal form and Misrepresentation/Non-Disclosure. Most information be limited to that demanded by Proposal Form? (f) Is Disclosure to agent Disclosure to Ins. Co. ? (ii) Conditions and Warranties (Express and Implied) Implication of Warranty Clause in Proposal form. (iii) Requirement of Insurable Interest in Insured with respect to Subject-matter of Insurance Policy. (iv) No recovery where loss intentionally caused. (v) The Principle of Indemnity (see following Ch. V.). Books - Prescribed 1. Preston et. Al. Chs. 5 & 6, 83-114 or R. Colinvaux Ch. 5 & 6. 2. MacGillivray, Ch. 8, Paras. 794-1033. *3. Vance, Ch. 7, pp. 36. Articles: 1. "Suicide" in Life Assurance" 1 M. L. R. 154. *2. "Non-Disclosure of Material Facts" 1958 J. B. L. *3. Good Faith in Insurance Law; Absolute Warranties or Reasonable Undertaking?" 1961 Journal of Business Law (J. B. L.) 268. 4. "Good Faith in Contract" 9 Curr. L. P. 16, at 19-28 Cases: 14 1. Kettles Roy & Wilson Ltd. v. Queensland Ins. Co. Ltd. 25 (1) K.L.R. 33 (Supra). 2. Societa Coloniale's Case (Supra). 3. Bhagat Ram. V. Eagle Star & Br. Dominions Ins Co. 15 K.L.R. 77. 4. Jubilee Insurance Co. Ltd. v. John Sematengo [1965] E. A. 233. *5. Motor Union Insurance Co. Ltd. v. A.K. Dhamba [1965] E.A. 233. *6. Proudfood v. Montefiore (1867) L.R. 2 Q.B. 511. *7. Bates v. Hewitt (1867) L.R. 20 B. 595. 8. Samuel & Co. Ltd. v. Dumas [1924] A.C. 431; 40 T.L.R. 31. CHAPTER V 15 THE PRINCIPLE OF INDEMNITY; REINSTATEMENT AND SUBROGATION 1. The Principle of Indemnity: (i) Meaning of the Principle - Where and where not applicable and why? (ii) Measure of Indemnity or redressable damage. (a) Non-valued (Pure - indemnity) Policies. (b) (iii) Valued Policies Alleged function and the true function of the Principle of indemnity: Compare and contrast: Castollain v. Preston and Yorkshire Ins. Co. v. Nisbett Shipping Co., infra. (iv) B. Double Insurance - Contribution Principle whereby the Principle of Indemnity is Indirectly buttressed. C. REINSTATEMENT - kinds thereof (a) Reinstatement under contract: Optional-when applicable? (b) Statutory Reinstatement: Fires Prevention (Metropolis) Act, 1744, S. 83. Books (a) Prescribed 1. Byamugisha, (Relevant Ch.) 2. Preston et at., Ch. 8, pp. 124-126; 133-140 Ch. 11, pp. 174-179. 3. Macneil, pp. 40 etc. (c) 4. Recommended Jones J.K. Fire Insurance Law, Ch. IV. Pp. 24-28. 16 5. E.R. Hardy Ivany, Fire and Motor Insurance, Ch. 21 Articles 1. Fire Insurance "Valued Policies", 13 Mod. L.R. 97 Cases *1. Pitman v. Universal Marine Ins. Co. (1882). *2. Richard Aubrey Film Productions Ltd. v. Graham *3. Castellain v. Preston (1883) 11 G.B.D. 380 *4. Dalby v. The Indian & London Life Ass. Co. (1854) 15 CB 365. *5. Elcock v. Thomson [1949] 2 K.B. 755; [1949] All E.R. 381. 6. Yorkshire Insurance Co. ltd. v. Misbett Shipping Co. Ltd. [1962] 2 Q.B. 330; [1961] 2 W.L.R. 1043. 7. Brown v. The Royal Ins. Co. (1859) I. E. & E. 853; 120 E.R. 1131 (Macneil). 8. The Times Fire Ass. Co. v. Hawke (1859) (Macneil). 9. Ex. P. Bowden (1864) 4 De G. J. & S. 477 (Macneil) followed in: Re Quicke's Trusts [1908] 1 Ch. 887; Sinnot v. Bowden [1912] 2 Ch. 414. D. SUBROGATION: (i) Right of Action by Assured against Third Parties. - How acquired by Insurer (ii) Limitations on the Doctrine of Subrogation - conditions to be fulfilled (iii) Extent of Subrogation Rights. (iv) Procedure of Recovering Damages from Third Party. (v) Subrogation as opposed to Double Insurance. (vi) The objective or practical effect of subrogation. Books: (i) Prescribed Preston et al Ch. 8 Sec. 3, pp. 127-133. 17 (ii) MacGillivray, Ch. 11, para 1882. Cases *1. Yorkshire Insurance Co. Ltd. v. Nisbett Shipping Co. (Supra). 2. Shah v. Mbogo [1967] E. A. 116. 3. Simon Petero Zirabamuzale v. Andrew Correct et al [1962] E.A. 694. 4. Castellain v. Preston [1883] 11, Q.B.D. 380 CHAPTER VI CLAIMS AND CLAIM SETTLEMENT 18 (i) (ii) (iii) Procedure of claim - Notice and Proof of Loss. (a) How to be made - Burden of Proof. (b) When to be made. Settlement of claims - How made. - Whether (and how) revocable. Fraudulent Claims. Books (a) Prescribed (1) Preston et al Ch. 3 pp. 141-149; 157-158. (2) James, J.K., Ch. S. pp. 60-62. (c) (3) Recommended MacGillivray, Ch. 9, paras. 1049-1163. (4) E.R. Hardy Ivamy, Fire and Motor Insurance (2nd edn)p; chaps. 10-20. Articles: "Relation between Commercial Law and Commercial Practice M.L.R. 249. Cases: (1) Nemchand P. Shah v. South Br. Ins. Co. Ltd. [1965]. (2) John Kakonge v. Oriental Fire & Gen. Ins. Co. Ltd. [1965] E.A. 137. (3) Kanti Co. Ltd. v. British Traders Ins. Co. Ltd. [1965] E.A. 108. PART II: COMPULSORY INSURANCE AND SOCIAL SECURITY CHAPTER II COMPULSORY INSURANCE: ONE EXAMPLE 19 Motor Vehicles Insurance (i) "Ordinance Cover Only" - (ii) (iii) (iv) (a) Statutory Requirement. (b) Social Considerations (c) Penal Consequences for Non-Compliance. Rights of Third Parties - Third Party Insurance - Recovery from Insurer's rights to recover from the Asured and Third Parties (also Subrogation, Supra). Clauses Restricting Cover - Whether effective and when and as between which persons. - Duty on Insurer to pay as envisaged by statute. "Third Party Liability Only" - (v) Duty on Vehicle (The Driver to have a Valid Insurance Policy on Vehicle Covering use of vehicle or road). Meaning thereof. Comprehensive Policies - Meaning thereof. Extent thereof. Whether different: from other first two types and how? Books Prescribed: (1) Preston et al., Ch. 21 pp. 337 - 347, 354-357. (2) MacGillivray, Ch. 12, paras. 2038-2059 20 Recommended: (3) E. R. Hardy Ivamy, Fire and Motor Insurance, Chps 33-34; & Appendix VII Recommended. Articles: *1. Third Party Insurance 2 M.L.R. 36 & 66 *2. Compulsory Insurance; Exemptions there from, 1 M.L.R. *3. Position of the Injured Third Party, 1 M. L. R. 4. Compensating the accident victim, 13 Curr. L.P. 85. 5. Liability for Highway Accidents, 17 Curr. L. P. 127. 6. Compensation for Accidents on the Road 18 Curr. L.P., 1. 7. Recent Developments in Motor Insurance, 19 Curr. L. P. 12. 8. Compulsory Third Party Motor Insurance in E. A. (Tanzania) - J. L. Kanywanyi E. A. L. Rev. Cases: *1. R.V. Harnan Sigh 24 (1) K.L.R. 101. 2. MaConochie - Welwood v. R. 23 (2) M. L. R. (R) 100. 3. Max (Contractors) Ltd. V. R. 24 (1) K. L. R. 70 *4. Hubber Fernandes, V. R. 7 U.L.R. 177 5. Union Assurance Society Ltd. v. Ainscow (161) E. A. 257. 6. Ramadhani Ali v. r. (1958) E. A. 344. *7. Alamanzano Kakoza V. R. (1958) E. A. 444 *8. R. V. Amanai Arandu (1960) E. A. 281. *9. The New Great Insurance Co. of India Cross (1966) E. A. 90. 10. Tarlok Singh Nayar & Anor. V. Sterling Gen. Ins. Co. Ltd. (1966) E. A. 144 (See Ch. 1 (ii). *11. Francis Ngaire v. N. I. C. of Tanzania Ltd. (1972) H. C. I. Case No. 134. 12. New India Insurance Co. Ltd. v. Ali Saleh Fato (1968) H. C. D. Cases No. 195. 13. Pioneer Gen. Asso. Co. Ltd. v. Ziwaa (1974) E. A. 165. 21 14. Ziwa v. Pioneer Gen. Asso. Soc. Ltd., (1974) E. A. 141. 15. Pioneer Gen. Asso. Co. Ltd v. Ziwa (1974) E. A. 161. 16. Kafuma v. Kimbowa Builders & Contractors (1974) E. A. 91. 17. Simon Peters Zirabamuzale v. Andrew Correct and Anor (1962) E. A. 694. 18. Albert V. Motor Insuance Burea (1972) Ac. 301. B. SOCIAL SECURITY (i) Social Security - Bourger's context and concepts and actual operation. (ii) Social Security and Socialism Readings - To be given later. --------------------------------------- 22