LEGAL PRINCIPLE: INSURANCE LAW — Marine Insurance — Construction of Policy Condition Requiring Report of Claim Within Stipulated Period
PRINCIPLE STATEMENT
A close study of exhibits shows that 'claim if any, must be reported to the insurer within 21 days of discharge from the carrying vessel'. They do not state whether the report should be oral or in writing. Oxford Advanced Learner's Dictionary defines report as spoken or written account of. I therefore hold that the report contemplated may be oral or in writing.
RATIO DECIDENDI (SOURCE)
Per Katsina-Alu, JSC, in Leadway Assurance Company Limited v. Zeco Nigeria Limited (2004) NLC-42000(SC) at pp. 5–6; Paras E–A.
"A close study of exhibits 1, 1A, 2 and 2A show that 'claim if any, must be reported to the insurer within 21 days of discharge from the carrying vessel'. They do not state whether the report should be oral or in writing. Oxford Advanced Learner's Dictionary defines report as spoken or written account of. I therefore hold that the report contemplated in exhibits 1, 1A, 2 and 2A may be oral or in writing."
EXPLANATION / SCOPE
Where an insurance policy requires reporting a claim within a stipulated period but does not specify oral or written form, a report may be either oral or in writing. The principle applies to insurance contract interpretation. The court will give the word “report” its ordinary dictionary meaning. The rule prevents technical defeat of claims based on unwritten form requirements. The insured need not reduce the report to writing if not expressly required. Substantial compliance with reporting obligation suffices.