What is the effect of false misrepresentation in a motor vehicle insurance contract?
British Columbia, Canada
The following excerpt is from Bell Pole Co. Ltd. v. Commonwealth Insurance Co., 2000 BCSC 601 (CanLII):
In Sleigh v. Stevenson, the court was required to construe the following statutory term: Where an applicant for a contract falsely describes the automobile to be insured, to the prejudice of the insurer, or knowingly misrepresents or fails to disclose in the application any fact required to be stated therein … the right of the insured to recover indemnity shall be forfeited.
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