Wigan v English and Scottish Law Life Assurance Association (1909) 1 Ch 291
In this case H had a life insurance which was to be forfeited if the insured committed suicide, but without prejudice to the bona fide interests of third parties.
He owed money to the plaintiff, and had effected an assignment of the policy to secure the debt in order to obtain more time to pay. The plaintiff had given him more time without knowing of the assignment, which was subsequently destroyed.
After H had committed suicide, the plaintiff learned of the assignment, and claimed benefit under the policy as an assignee for valuable consideration.
It was judged that the plaintiff did not give any consideration for any interest he might have acquired under the deed. The mere existence of a debt between H and the plaintiff was not sufficient consideration for the giving of a security from H to the plaintiff in respect of it. Such security may well be given in return for extra time to pay, or for forbearance to sue but none of those things existed here, therefore the security was voluntary.
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