The applicant was seriously injured in a motorcycle accident and applied for statutory accident benefits.
The insurer denied the claims on the basis that the applicant knew or ought reasonably to have known that he was operating an uninsured motorcycle, as his policy had allegedly been cancelled for non-payment of premiums.
The arbitrator found that the insurer's notice of termination was defective and void ab initio because it was not clear and straightforward, and the insurer failed to follow its own cancellation procedures.
Consequently, the policy was not properly cancelled, and the insurer was not entitled to deny benefits under section 30(1)(a) of the Schedule.
