Section 69: Settlement of claims.

(1) Where-
(a) civil proceedings are taken in court in respect of any claim relating to any risk required to be insured against under this Act or any other law; and
(b) a judgment is obtained against the person insured then, notwithstanding that the insurer may be entitled to avoid or cancel or may have avoided or cancelled the policy, the insurer shall, subject to this section pay to the person entitled to the benefit of such judgment the sum payable (including costs and interest sum) not later than 30 days from the date of delivery of the judgment.
(2) No sum shall be payable by an insurer under the provisions of subsection (1) of this section-
(a) in respect of any judgment, unless before or within 7 days after the commencement of the proceeding in which the judgment was given, the insurer has notice of the bringing of the proceedings ;
(b) in respect of any judgment, if execution thereon is stayed, pending an appeal; or
(c) in connection with any liability, if before the happening of the event which gave rise to the liability, the policy was cancelled by mutual consent or by virtue of any provision contained therein and-
(i) before the happening of such event, the certificate of insurance was surrendered to the insurer, or the person to whom the certificate of insurance was delivered made a statutory declaration that the certificate of insurance had been lost or destroyed and so could not be surrendered; or
(ii) before or after the happening of the event or within a period of 14 days from the taking effect of the cancellation of the policy, the insurers had commenced the proceedings under this Act, in respect of the failure to surrender the certificate of insurance.
(3) No sum shall be payable by an insurer under the provisions of this section if-
(a) in an action commenced before or within 3 months, after the commencement of the proceedings in which the judgment was given, the insurer has obtained a declaration that apart from any provisions contained in the policy, he is entitled to avoid it on the ground that it was obtained by the non-disclosure of a material fact or by a representation of fact which was false in a material particular; or
(b) the insurer has avoided the policy on the ground that he was entitled to do so apart from any provision contained in it.
(4) An insurer who has obtained a declaration under subsection (3) of this section in an action shall not by that declaration be entitled to the benefit of the provisions of that subsection in respect of any judgment obtained in any proceeding commenced before the commencement of that action, unless before or within 7 days after the commencement of that action, he had given notice to the person who is the plaintiff in the action under the policy-
(a) specifying the non-disclosure or false representation on which he proposes to rely; and
(b) that he intends to seek a declaration.
(5) A person to whom notice of such action is given under subsection (4) of this section may, if he desires, be made a party thereto;
(6) in the case of claims arising from life insurance policies, it shall be sufficient for the insurer to make any payment due to the policy to the beneficiary named in the policy document.