A company director who claims he is entitled to a £1 million life insurance payout following the death of his wife is rejecting claims by Bank of Ireland Life that a reference to a figure of one million pounds on an insurance policy schedule was a "clerical error" and that the amount was really £100,000, the High Court was told yesterday.
The bank claims the insurance was for £100,000, which has been paid out to David McInerney, and that the "clerical error" was corrected in later documents.
It also claims Mr McInerney could not have thought the sum insured was £1 million when the premium payable was £40.01 a month.
Miss Justice Elizabeth Dunne is hearing a claim by Digibiz Ltd, a computer software company of which Mr McInerney is a director, with an address at Euro Business Park, Little Island, Cork, against New Ireland Trading Assurance Company plc trading as Bank of Ireland Life.
The claim is about the exact value of an insurance policy effected in February 1999 by Digibiz, of which Mr McInerney was a director with his late wife, Rosarie. Ms McInerney died in October 2001 after contracting Hodgkinson's Disease and the claim arises as a result of her death.
In evidence, Mr McInerney said when he and his wife met Mr Finn Lyons at the Bridge Street, Cork, BOI branch, on February 8th, 1999, about insurance cover, they were asked about their education. He said Mr Lyons pointed out £100,000 would be just one year's salary based on their qualifications. Mr Lyons also referred to the fact they had a baby girl and they needed to put in place proper cover. "He said £100,000 was not enough and we should go for cover of £1 million," Mr McInerney said.
"We were kind of flattered. It did not shock us." When they left the office, they believed they were getting insurance for £1 million.
Mr Lyons had told them he was obliged by the financial regulations to inform each of them that they would benefit to the tune of £1 million if the other died.
"He said it to me first and then turned to Rosarie. We laughed at this," he said. Michael Cush SC, for Digibiz, said there was discussion with Mr Lyons of the premium to be paid and it was put at £40 a month, but Mr Lyons had said that amount was reviewable and Mr McInerney had inferred that the premium would increase significantly as time went by.
The McInerneys were given documents to sign which did refer to insurance in the sum of £100,000 but had not read those documents.
Mr Cush said the defendant sent a copy policy schedule to his client on February 11th, 1999, which confirmed cover in the sum of £1 million. That policy schedule contained a misspelling of Digibiz's name which was corrected when a copy policy schedule was sent on February 18th, 1999. That latter document also confirmed cover of £1 million. This was not a matter of "an extra nought", Mr Cush said. There was a "deliberate and conscious writing of one million".
An assignment of life policy form sent on March 9th, 1999, by Bank of Ireland to Digibiz also stipulated cover as being £1 million, he said.
The bank could not point to any document sent to Digibiz pointing out that the insurance was £100,000, Mr Cush said.
When Mr McInerney sought payment of £1 million he was told that the sum was £100,000.
The defendant had produced a most unusual document, described as a "policy schedule, original" which referred to an amount of £100,000 and was dated April 28th, 1999.
His client was not told how this document came into being and about it being different from the February 1999 policy schedule in Mr McInerney's possession.
There was something "distinctly odd" about this.
The case continues today.
