In Brief
A tractor owner purchased motor insurance with extra premium for coverage of a driver and three employees. When one covered employee died in an accident, the insurer denied liability. The Motor Accidents Tribunal held the insurer liable because it had charged a premium for the deceased's coverage. The High Court reversed this, giving the insurer recovery rights against the owner. The Supreme Court allowed the appeal, holding that an insurer cannot be absolved of liability when it explicitly charged a premium for covering the deceased. The exclusion clause must be read consistently with the coverage paid for."
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