A commercial trucking company sought indemnity under an automobile insurance policy after its tractor unit was reported stolen.
The insurer denied the claim, alleging the insured provided false particulars and failed to disclose significant unrepaired damage and the true market value of the vehicle during the application process.
The court held the insurance broker acted as the insured’s agent and that the insured was bound by the contents of the signed application and OAF1 form.
Relying on s. 233(1)(a)(i) and (ii) of the Insurance Act, the court found the insured provided false particulars and knowingly failed to disclose material facts, which prejudiced the insurer’s underwriting decision.
The claim was therefore invalid and indemnity forfeited.
