Georgina Saunders v Irish Life Assurance Plc

• Jurisdiction: Ireland
• Judge: Mr. Justice Tony O'Connor
• Judgment Date: 24 June 2020
• Neutral Citation: [2020] IEHC 312
• Docket Number: [No. 2015/2848 P]
• Court: High Court
• Date: 24 June 2020

BETWEEN

GEORGINA SAUNDERS

PLAINTIFF

AND

IRISH LIFE ASSURANCE PLC

DEFENDANT

[2020] IEHC 312

Tony O'Connor J.

[No. 2015/2848 P]

THE HIGH COURT

Life policy – Material facts – Indolence – High Court considering the duty to furnish material facts requested in an online questionnaire when applying for a life policy and the obligation to review the replies prior to inception – Whether the defendant was guilty of indolence

Facts: The High Court considered the duty to furnish material facts requested in an online questionnaire when applying for a life policy and then the obligation to review the replies prior to inception. The opening of the case together with the replying written submissions for the plaintiff, Ms Saunders, focussed on the duty of the defendant, Irish Life Assurance PLC, as set out by McMahon J in Manor Park Homebuilders Limited v AIG Europe (Ireland) Limited [2008] IEHC 174, “to make its own reasonable enquiries to carry out all prudent investigations and to act at all times in a professional manner”. The failure of the defendant to seek medical records before inception of the policy was compounded, according to counsel for the plaintiff, by the omission to make enquiries following the death of the life assured about the answers given in the questionnaire. This judgment addressed the factual matrix which can be established. Having considered the evidence and submissions, the Court considered that the following were the relevant questions: (1) Was the deceased, Mr Dunne, obliged to disclose the facts about his drug use, alcohol abuse and treatment in April 2008? (2) Should the Court allow the plaintiff to rely on her suggestion that the PTSB official who completed the online application in 2008 did not ask the deceased for his reply to the relevant questions in the questionnaire, when there was no mention of this allegation until she gave evidence in March 2020? (3) Was the defendant or its agents guilty of culpable indolence and if so what is the effect of the alleged indolence?

Held by O’Connor J that the deceased was obliged to give details of his past drug and alcohol abuse with depression to the defendant in April 2008. The Court dismissed the suggestion that the defendant caused the deceased to believe that he need not be accurate in giving the details sought. The Court held that the defendant was not guilty of indolence in considering the application for life cover or in the circumstances surrounding the online application. The Court held that the defendant had satisfactorily explained its process and how it was applied.

O’Connor J held that the claim of the plaintiff commenced by plenary summons issued on the 14th April, 2015, would be dismissed.

Claim dismissed.

JUDGMENT of Mr. Justice Tony O'Connor delivered on the 24th day of June 2020

Introduction

1 This judgment considers the duty to furnish material facts requested in an online questionnaire when applying for a life policy and then the obligation to review the replies prior to inception.

2 The opening of the case together with the replying written submissions for the plaintiff focussed on the duty of the defendant life assurer, as set out by McMahon J. in Manor Park Homebuilders Limited v. AIG Europe (Ireland) Limited [2008] IEHC 174:-

“… to make its own reasonable enquiries to carry out all prudent investigations and to act at all times in a professional manner”

3 The failure of the defendant to seek medical records before inception of the policy was compounded, according to counsel for the plaintiff, by the omission to make enquiries following the death of the life assured about the answers given in the questionnaire. In other words, this judgment addresses the factual matrix which can be established.

Factual Background

4 The plaintiff gave evidence that her relationship with the late Eamonn Dunne (‘the deceased’) started in August, 2007. They shared interests in gym, fitness and cinema particularly. She did not witness Mr. Dunne abusing alcohol or using drugs. They moved into a rented apartment and she became pregnant around March, 2008 leading to the birth of their son in January, 2009.

5 On the 4th of April, 2008 the plaintiff visited a branch of the PTSB with the deceased to enquire about getting a mortgage. The plaintiff, as opposed to the deceased, instigated the visit. Despite the plaintiff's steady income, the PTSB representative advised that the absence of other readily identifiable unencumbered assets meant that loan approval would not be forthcoming at that stage. The deceased was divorced. The plaintiff testified that the PTSB official then suggested that they take out a life policy which prompted the plaintiff to think about having some security for her unborn child. Ultimately the plaintiff and the deceased sat down with another official in the PTSB branch that day to complete an online application for a joint life policy with the defendant.

6 The plaintiff understandably could not recall in March, 2020 much of what she was asked in the PTSB branch for the online application completed in April, 2008. The plaintiff in direct examination denied that the deceased had been asked about whether he had had “treatment for mental or nervous disorder” or had “ever taken drugs for other than medicinal purposes”. The impression sought to be given to the Court was that the PTSB official with his laptop entered replies in the online application without confirming them with either the plaintiff or the deceased. Under cross examination the plaintiff then testified that she did not “recall” whether specific questions were asked. She described the “quick procedure” for completing the online questionnaire.

Declaration

7 The declaration dated the 4th of April, 2008, signed by the plaintiff and the deceased had five paragraphs, three of which are particularly relevant:-

“I have read and understand the note concerning my obligation to tell Irish Life about all material facts in connection with the application (Online application process and telling Irish Life about material facts) in the booklet and understand that if I do not tell Irish Life all material facts, this contract could be void. I declare that all statements recorded in answer to the questions in my online application form as well as those about tobacco consumption (including any statements written down for me) are true and complete. I understand that I will receive a copy of the online application form questions and my answers are for my own records.

I understand that I must tell Irish Life in writing about any changes in my health or circumstances before this insurance starts. I understand that this insurance will not start until Irish Life has accepted me for cover and I have paid the first payment.

I consent to Irish Life obtaining information from any doctor who at any time has attended me concerning anything which affects my physical or mental health and I authorise them to give Irish Life this information. Irish Life may also get information from any insurance company and I also authorise them to give Irish Life this information. I agree that this authority will stay in force after my death as well as before…”

8 The plaintiff said that she had not read the terms and conditions booklet, subsequently issued by the defendant. She only went through them when giving evidence before this Court in March, 2020. The plaintiff accepted that she could have received a letter addressed to herself and the deceased dated the 7th of April, 2008, which enclosed the life options booklets. That letter noted:

“Our decision to accept you for cover is based on the information you provided in either your paper or online application form. It is important that you take note of the following… You must carefully review your answers to the health questions to make sure they are correct: (attached) …”

9 The court is satisfied, from the answers of the plaintiff and the other testimony about the standard practice of the defendant at the time, that the said letter was made available to the plaintiff and the deceased in April, 2008 and before the payment of monthly instalments from the plaintiff's own account for the policy commenced.

Death of Mr. Dunne

10 On the 23rd April, 2010, the deceased was shot dead. The plaintiff avoided reading or being involved with the significant publicity about his murder and the criminal activities of the deceased. At that time her relationship with the deceased had become strained due, among other factors, to the surveillance of Mr. Dunne and his associates by An Garda Síochána. The deceased lived with his mother for...