LEGAL PRINCIPLE: INSURANCE LAW – Policy Document – Absence of Policy Does Not Invalidate a Non-Marine Insurance Contract
PRINCIPLE STATEMENT
In non-marine insurance, there are no statutory requirements prescribing the form of document to be used; even a parol contract is valid. Any document containing the terms may be treated as a policy.
RATIO DECIDENDI (SOURCE)
Per Kutigi, JSC, in Ngillari v. National Insurance Corporation of Nigeria (1998) NLC-721992(SC) at pp. 14; Paras B–C.
"In relation to contracts of non-marine insurance there are no statutory requirements… prescribing the form of document to be used… indeed even a parol contract of non-marine insurance appear to be valid. Therefore, any document which contains the terms of the contract may be treated as, or even called, a policy."
EXPLANATION / SCOPE
Non-marine insurance contracts do not require a written policy. Oral contracts are valid. The principle applies to all non-marine insurance. The policy document is evidence, not a condition of validity. The rule protects policyholders even when a formal policy is not issued. The court will enforce the contract based on the terms agreed.
