Notice of Accident

Most accident insurance policies contain a provision requiring that notice of the injury be given to the company within a certain time--generally 30 days after the accident. Two recent cases have raised a question that may arise when a "latent injury" is suffered. Must notice then be given within 30 days after the injury, or only within 30 days after the injury is discovered?

In one of the cases, in Kansas, the insured slipped while repairing a fence. He thought at the time that he had swallowed part of a fence staple, but it was not until two years later that an X-ray showed that such was the case. He then gave the insurer notice of the injury and was allowed to recover on his policy. In the other case, decided in New York, the insured disappeared on April 28, 1913. The automobile in which he was last seen was dredged up in the Delaware River at Philadelphia near a ferry landing, in December, 1917. Notice was then given to the insurer of his accidental death, and, when liability was denied, suit was brought. The court held that the time within which notice had to be given--in this case ten days-- ran from the day the policy holder met with his accident.

The phrasing of most policies would allow a decision either way. With no specific provision covering such a contingency, the insured would argue that he was relieved of any duty to do what was manifestly impossible. The insurance company would argue that the condition placed on its liability was absolute and reasonable, being inserted to protect the company from claims made long after all witnesses had ceased to be available. Courts will probably continue to disagree, and the only safe practice for the policy holder or beneficiary is to give immediate notice.