Page 21 - Life Assurance

re no mention was made of it at the time the
agreement was made.

A mistake in the sense used here does not
mean an error in judgment by one party, but
refers to a situation when it can be shown that
the actual agreement made was not the one
stated in the contract. If Sayed believes to be the
owner of certain property, and insures that property,
Sayed cannot later demanded all of the premium
back because he found out that, in fact, he was not
the owner of the property. This was a mistake in
judgment, and the courts will not relieve this kind of
mistake.

As an example of mistake found in life
insurance policies, an insured paid up his policy and
through a mistake by the insurer, the endorsement
stated that the value of the paid up contract more
than the proper value.

85 Life41/life/life 08