The applicant insurer sought a declaration that the respondent insured breached statutory conditions 4(1) and 1(1) of its automobile policy after an employee, who did not hold a valid driver's licence, was involved in an accident while driving a company van.
The insurer argued the insured failed to verify the employee's licence and failed to report a material change in risk.
The court dismissed the application, finding that the insured acted reasonably in assuming the employee was licensed, as he had driven his own vehicle to work for ten years and was not hired as a driver.
The court also found no material change in risk, as the employee's use of the company van was infrequent and not habitual.
