General Accident Assurance Corporation, Ltd, v Commissioners of Inland Revenue
| Jurisdiction | Scotland |
| Judgment Date | 06 February 1906 |
| Docket Number | No. 74. |
| Date | 06 February 1906 |
| Court | Court of Session |
Lord President, Lord M'Laren, Lord Kinnear.
RevenueStamp-DutyPolicy of Insurance against accident and illness containing stipulation for return of premiums on death or attaining a certain ageStamp Act, 1891 (54 and 55 Vict. cap. 39), secs. 91 and 98, and First Schedule sub nom. Policy of Life Insurance and Policy of Insurance against Accident.
A policy of insurance which bore that, in respect of the payment by the assured of 2s. 6d. per month, the company issuing the policy would pay to the assured or to his representatives a monthly allowance of 4 in the event of his illness, a monthly allowance of 4 in the event of accident, and 100 in the event of death or loss of limbs or sight by accident, contained a stipulation for the return to the assured or his representatives of half of all the premiums paid under the policy, as soon as the assured reached the age of sixty-five years, or in the event of his previous death, if the policy remained in force.
In an appeal raising the question whether under the Stamp Act, 1891, the instrument was chargeable with duty both as an accident insurance policy and a life insurance policy, or only as an accident insurance policy, held (1) that the instrument was in its nature primarily a policy of insurance against accident; (2) that the stipulation for the return of half the premiums in the event of the death of the assured or on his reaching a certain age, was merely incidental, and would be meaningless as a contract of life insurance if it were read apart from the other provisions of the policy; and accordingly (3) that the instrument fell to be assessed and charged only as an accident insurance policy.
On 22d September 1904 the General Accident Assurance Corporation, Limited, presented an instrument to the Commissioners of Inland Revenue for the opinion of the Commissioners as to the stamp-duty with which it was chargeable.
The instrument, which was under seal and signed by two directors and the manager of the Company, was dated 4th September 1904, and headed Policy No.. It witnessed that a person (thereinafter called the assured), having made a proposal and declaration, and having paid to the General Accident Assurance Corporation, Limited (thereinafter called the Corporation), the sum of 2s. 6d., in consideration of the insurance after mentioned, from 1st September to 1st October 1904, the Corporation would pay to the assured, or in case of death, the assured's legal personal representatives, in the following events, the sum or sums mentioned as payable in respect thereof, that is to say, A.The sum of 4 per month, or at that rate for any proportionate part thereof for the number of consecutive days after the first seven days up to a period of six months, that the assured is necessarily and continuously confined in the house, and regularly attended in the house by a legally qualified medical practitioner by reason of illness that is contracted and begins after this policy has been in force for thirty days, and one-half indemnity per month, as above specified, if during the convalescence of the assured he (or she) shall by reason of such illness be fully and continuously disabled and prevented from performing any and every kind of business though not confined to the house for a period not exceeding four weeks, providing the complete period for which indemnity shall be paid shall not exceed six months.
B.The sum of 4 per month, or at that rate for any proportionate part thereof for the number of consecutive days from the date of the accident for loss of time resulting from bodily injuries (other than those specified in paragraph C) caused solely and exclusively by external, violent, and accidental means which shall, independently of all other causes, wholly and continuously disable and prevent assured from performing any or all duties pertaining to his business or occupation during the period of such disability not exceeding twelve consecutive months; or if the injuries shall not wholly disable the assured, or if total disability shall be continuously followed by partial disability, and such partial disability shall prevent the assured from performing fully work essential to his duty or duties, the Corporation will pay the assured for such period of partial disability not exceeding six consecutive months 40 per cent of the indemnity before specified, but the combined period for which indemnity shall be paid for total and partial disablement not exceeding twelve consecutive months.
C.The sum of 100 if the injury received as...
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