Green v Russel [1959] 2 QB 226
Benefit paid out under insurance contract not to be deducted from damages upon death
Facts
An employer took out a personal accident group insurance policy. Under this policy, the employer was “the insured” and curtain named employees were “the insured persons.” The policy provided that if any insured person died then the insurance company would pay a specified sum but the insured was the absolute owner of the policy and the insurer was not bound to recognise any equitable or other claim in the policy.
Issues
The plaintiff was the mother of one of the insured persons who had died whilst at work. Damages were agreed at £1,300. £1,000 was to be paid to the plaintiff under the insurance policy. The question was whether this £1,000 was a benefit arising out of the death which should be taken into account and deducted from the agreed damages. The trial judge found in favour of the plaintiff. The defendant appealed.
Decision/Outcome
The Court of Appeal held that the deceased, and thereby the plaintiff, had no right at law to the policy money as he was not a party to the insurance contract. The deceased employee also did not have any equitable interest in money under the policy. However, the Court upheld the plaintiff’s claim that the Fatal Accidents (Damages) Act 1908 precluded the £1,000 being taken into account in assessing the damages to be awarded to her. The £1,000 was “paid or payable on the death of the deceased under any contract of…insurance” within section 1 of the 1908 Act because it was contractually (albeit indirectly) paid to the plaintiff. Therefore, the £1,000 was not to be deducted from the amount of damages to which the plaintiff was entitled and the appeal was dismissed.
292 words
Updated 19 March 2026
This case note accurately summarises Green v Russell [1959] 2 QB 226. However, readers should be aware that the statutory framework discussed in the article is significantly outdated. The Fatal Accidents (Damages) Act 1908 was repealed and replaced, and the relevant law is now found in the Fatal Accidents Act 1976. Section 4 of the 1976 Act provides that, in assessing damages in a fatal accidents claim, any benefit which has accrued or will accrue to a person from the deceased’s estate or otherwise as a result of the death shall be disregarded. This provision broadly preserves the principle applied in Green v Russell — that insurance money paid on death should not be deducted from damages — but readers should consult the 1976 Act rather than the 1908 Act as the operative legislation. The case itself remains a useful authority on the operation of privity of contract in the insurance context and on the policy rationale for disregarding insurance benefits when assessing fatal accident damages, and it continues to be cited in that regard. The article’s description of the facts and the Court of Appeal’s reasoning is accurate.
