JUDICIAL PROTECTION OF THE INSURED: THE CASE OF CENTRIQ INSURANCE CO. LTD V OOSTHUIZEN & ANOTHER [2019] ZASCA 11
Keywords:
Oosthuizen, insured, indemnity, purposive ruleAbstract
The paper examines the South African Supreme Court of Appeal’s decision in Centriq Insurance Co. Ltd v Oosthuizen and Another [2019] ZASCA 11. The matter came as an appeal against a ruling of the Free State High Court. Centriq Insurance Company was held to be liable to Castro, who was the second respondent on appeal, in terms of a professional indemnity insurance policy. Castro had been sued by Oosthuizen, who was the first respondent on appeal, after he had given a wrong advice about the viability of an investment which was made by Oosthuizen. Emphasis is put on the protection of the insured by the court which emanates from the rules of interpretation which it adopted. The paper therefore gives brief facts of the case to appreciate the background of the case. It then notes the decision of the Court followed by its analysis. It justifies why the decision should be commended in South Africa as it adopted rules of interpretation which protect the insured. The paper is motivated by the uneven relationship between the insurer and the insured with the former occupying a stronger position than the later to dictate terms of the contract. Hence it highlights the importance of courts in protecting the interests of the insured.
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References
i Swart v Cape Fabrix (Pty) Ltd 1979 (1) SA 195 (A) 202 and Scottish Union and Insurance Co. Ltd v Native
Recruiting Corporation Ltd 1934 AD 458.
ii Peterson v Aegis Insurance Co Ltd 1989 (3) SA 478 ( C).
iii Fedgen Insurance Ltd v Leyds 1995 (3) SA 33 (AD)
iv Kliptown Clothing Industries (Pty) Ltd v Marine and Trade Insurance Co. of South Africa Ltd 1961 (1) SA 103
(AD).
v M.F.B. Reinecke, J.P van Nierkerk and P.M. Nienaber, South African Insurance Law, LexisNexis, 1st ed, 2013,
pp 207.
vi Nyakambiri Farm (Pvt) Ltd v Zimnat Insurance Co. Ltd 1996 ZLR 473 (HC).
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