Smith v Associated Dominions Assurance Society Pty Ltd [1956] HCA 58

High Court of Australia Taylor J. Smith v Associated Dominions Assurance Society Pty Ltd [1956] HCA 58

ORDER Appeal dismissed.

Cur. adv. vult.

Oct. 5 Taylor J. delivered the following written judgment:—

The above-named respondent society, on 15th March 1950, issued a policy of insurance on the life of the appellant's husband, Eric Lionel Smith, who died on 4th August 1953. The society is now in liquidation pursuant to an order for winding-up made by Fullagar J. [1] in the exercise of the powers conferred upon this Court by Div. 8 of Pt. III of the Life Insurance Act 1945-1953 and the appellant, who is also the executrix of the deceased, brings this appeal from the rejection by the liquidator of her proof of debt in respect of the amount alleged to have become payable under the policy. The proof was for the sum of £2,300 and it was rejected upon the ground that the policy had become "null and void".

1. (1953) 89 C.L.R. 78.

The policy specified a yearly premium of £44 9s. 4d. and it was expressly declared to be due and payable "at and for the time or times stated" in an appended schedule. Reference to the schedule indicates that the "Date of Payment of Premium" was "15th March" and that the "Duration of Payments of Premium" was "until the death of the assured". The risk under the policy commenced on 15th March 1950. The first endorsed condition of the policy, which relates to the payment of premiums, is in the following terms:

1. If any premium be not paid on the due date or within thirty days thereafter this policy shall be null and void and any premiums paid in respect thereof shall be retained by the society unless death occur within such thirty days in which case the overdue premium together with the unpaid premiums for the whole of the then current year of assurance shall be deducted from the amount payable by the society under the policy.