The Liability of Eastern Express Insurance Company - Essay Example

Every insurance contract requires an insurable interest to support it, otherwise, it is invalid. This was held in Anctil vs. Manufacture Life Insurance Co. [1899] AC 604. Insurable interest is essentially the pecuniary or proprietary interest that is at stake or in danger should the insured opt not to take out an insurance policy on the subject matter. It is the interest that the insured stands to lose if the risk attaches. The risk that is therefore attached to every passenger in a public means of transport is varied to some extent (Soule, 1917 p. 210).

The liability of Eastern Express’s insurance company on each of the individuals in this situation will depend on the interest that the train insured. Invariably, there are two or more parties who are always involved in an accident that occurs by a public means of transport. In this case, it is the train at fault. The insurance undertakes to pay compensation to the parties aggrieved by the accident on behalf of the driver or the company that insured the train.

The insurance that such means of transport usually take among other things, provides insurance cover in respect of loss or damage that is suffered through damage of property or the death of the injury to any person resulting from an intentional or negligent act or omission by the operator or agents or servants of the operator of the train in connection with the provisions of public passengers and transport services.

Fred
Fred has become permanently blind and his camera equipment, which he was transporting with him, was destroyed. While it is true that the eyesight of a filmmaker is essential to his job, this cannot be used as a basis to claim, future or anticipated loss of income. Fred had not yet made a deal with the television company, and it would therefore be had to calculate how much his income would have been. However, the insurance company will have to compensate him for the injuries that he has from the accident and the damage to his equipment.

Albert
Albert was 85 years old and suffering from terminal cancer. Even though Albert was already old and terminally ill, it would be evident that it was the accident that caused his death. However, given his age and his disease, the compensation would not be as much as for an individual who is still considered productive. His estate can only claim compensation for the death that was caused by the accident. His age and state of health do not rule out the possibility and right to be compensated.

Lydia
Physically, she was unhurt but suffered Post post-traumatic stress Disorder, which stopped her from working for a year, after which time she was only able to work part-time as an assistant. However, Lydia has not been able to work as a result of her condition and would therefore require that her loss of income be taken into consideration. If she settled her claim before the effects of her condition, she would not be in a position to renegotiate. Her circumstances are very unique and as such there would be several things to be considered, including her ability to continue with the job that she was doing before the accident. She also has a right to claim for emotional stress and the depression that her condition has impacted on her life.

Cynthia
Cynthia, a doctor in the next carriage, was also killed. She is at the prime of her age and has a good job. If it is proved that she is the breadwinner of her family, it would be paramount to compensate her estate relative for the loss that the family has suffered. Moreover, she has a dependant, a daughter who is 15 years old and whose circumstances have to be taken into consideration. As to the 25-year-old daughter and the husband, they can only claim under her estate because of her death. 

Although it is mandatory to establish liability, either against the train company or any other party, chances are the passengers will be compensated. This however depends on the circumstances under which the accident occurred, and the basis under which the passenger suffered injury.

As long as they are in a course of operation, an accident does occur, whether or not it is by a wrongful act, default or neglect the operators will be liable to pay compensation. While the insurance company may shift liability against the driver, they shall have to pay the passengers and later claim against the train company (Cornelius, 2001, p. 28).

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