Insurance – Contract of insurance. The respondent's insurer had been entitled, under the policy, to take over and conduct the defence and settlement of the appellant's claim against her, for that purpose to retain an attorney on her behalf and to have full discretion in its settlement. Accordingly, the Privy Council allowed the appellant's appeal and held that the judge had erred in setting aside her initial judgment against the respondent on the basis that the respondent had not been served and the insurer's lawyer had acted without authority.