A businessman who was told a life insurance policy was only worth £100,000 (€127,000) when he sought payout of £1 million (€1.27 million) after his wife died told the High Court yesterday the figure of £1 million was "burned indelibly" into his mind after a bank meeting where the insurance cover was set up.
David McInerney said that when he and his wife Rosarie left the 1999 meeting with a bank official, they were definite the cover was for £1 million. He was "positive" about his version of events.
Mr McInerney lost his wife and business partner to Hodgkinson's disease in 2001, just two years after the insurance policy was effected through Digibiz Ltd, the computer software company of which both McInerneys were directors.
Ms Justice Elizabeth Dunne is hearing a claim by Digibiz, Euro Business Park, Little Island, Cork, against New Ireland Trading Assurance Company plc, trading as Bank of Ireland Life. The claim, which arises as a result of Ms McInerney's death in October 2001, is about the exact value of an insurance policy effected in February 1999 by Digibiz.
In his second day in the witness box yesterday, Mr McInerney said it was the first insurance policy the couple had taken out and they had done so with a bank they had been dealing with for a long time. He said they had gone to the bank to get cover of £100,000, but the matter of £1 million cover was brought up by Finn Lyons, whom they had met to discuss the cover. After that, it was his belief the cover was for £1 million. That figure was "burned indelibly in my mind" when he left the meeting.
The monthly premium of £40 (€51) a month for the policy meant nothing to him, he said.
Cross-examined by Alexander Owens SC, for the defence, Mr McInerney said he signed two documents at places where he was told to and which were indicated with an X. He said the couple were definite the the policy cover was for £1 million.
"The impression we had was it was for £1 million and we had moved on from £100,000 at the start of the meeting," Mr McInerney said.
A financial adviser, Declan Harrington, said the McInerneys had told him their company, Digibiz, had insurance cover for £1 million. When he was told the premium was £40 a month, he had said they were getting excellent value. He said he thought it should be higher and asked the couple if they would mind if he checked it out.
He rang the insurance company a few days later and, with Mr McInerney's permission, presented himself as Mr McInerney and asked for details of the policy. He was told the sum insured was £100,000 and the premium was £40.01 a month. When he told the McInerneys, they were visibly shocked.
Mr Harrington said they had reiterated that they were positive the cover was for £1 million. When they showed him the documents, Mr Harrington said he had reassured them they were covered for the £1 million.
The hearing continues today.