In Brief
A tractor owner insured his vehicle with National Insurance Company, paying an extra premium for coverage of the driver and three employees. When one of the employees died in a vehicle accident, the Motor Accidents Claim Tribunal awarded compensation and held the insurance company liable, finding it had charged a premium for three persons excluding the driver. The High Court reversed this, giving the insurer recovery rights against the owner. The Supreme Court allowed the appeal, holding that since the insurance company specifically charged a premium for three persons, it cannot be absolved from liability on death. Insurance policies must be read to advance their main purpose, not to defeat the insured's reasonable expectations.
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