GIM9030 - Mutual insurance: mutual insurance as a trade
The question sometimes arises whether mutual insurance is a trade at all.
Many mutual activities do not amount to trading. The position in relation to mutual insurance was clouded for a long time by conflicting House of Lords바카라 사이트 decisions in The New York Life Assurance Company v. Styles 2TC460 and CIR v The Cornish Mutual Insurance Co. Ltd. 12TC841. In the former case it was held that the mutual activities of the company did not amount to the carrying on of a trade, while in the latter case it was held that the company conducted 바카라 사이트the ordinary and well known business of fire insurance바카라 사이트. The New York case has never been over-ruled (the House of Lords has only been able to review its own decisions since a practice statement issued in 1966) and it is still occasionally argued that there are circumstances in which mutual insurance does not amount to a trade. On the authority of the later cases this contention will be resisted. It is evident that by the time the House of Lords heard Ayrshire Employers Mutual Association v CIR (1946) 27TC331 it was satisfied that the Cornish Mutual case was the better authority (per Lord Moncrieff at 341/2).