Automobile liability insurance policies invariably contain a provision requiring immediate notice of accident and suit. The purpose of such a provision is to allow the insurer to make an investigation of the accident in order to prepare a defense and to prevent fraudulent and invalid claims. Although compliance with the provision may be of the utmost importance to the insurer, it frequently is a matter of little or no concern to the insured, and so upon the happening of an accident the insured frequently fails to give due notice to the insurer. The succeeding action by the injured party against the insurer, pursuant to the policy provisions and/or the applicable liability insurance statute, then requires an answer to the difficult question of what effect such non-compliance by the insured has on the rights of the injured party against the insurer. The cases are not in agreement as to what that answer should be, the difference of opinion arising from several factors.
John W. Hupp S.Ed.,
INSURANCE-CONDITIONS-EFFECT OF NON-COMPLIANCE WITH NOTICE CLAUSE ON INSURER'S LIABILITY,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol51/iss2/7