Summerton v SGIC Life Limited No. Scgrg-97-1630 Judgment No. S121

The matter before the court was an action by the executors of Mrs Vidic's will against SGIC Life Limited, seeking to recover $300,000 under a life insurance policy. SGIC denied liability and sought to avoid the policy on the grounds of non-disclosure and misrepresentation. The key issues before the court were whether the duty of disclosure is an absolute duty or whether it is qualified by a requirement of a reasonable opportunity to disclose, and whether Mrs Vidic had breached her duty of disclosure and made misrepresentations. The court found that the contract of insurance was entered into on 2 June 1995 when the policy was dispatched to Mrs Vidic. The court held that the duty of disclosure is an absolute duty, not qualified by a requirement of a reasonable opportunity to disclose. Mrs Vidic had knowledge of material facts on 23 and 24 May 1995 that attracted the duty of disclosure but failed to disclose them, thereby breaching her duty of disclosure and making misrepresentations. SGIC was therefore entitled to avoid the contract. The court dismissed the claim and entered judgment in favour of SGIC.