Century Insurance Co Ltd v Northern Ireland Transport Board [1942] AC 509

Facts

  • An employee of the Northern Ireland Transport Board was tasked with delivering petrol and transferring it from a tanker to an underground storage tank.
  • During the course of this work, the employee lit a cigarette, causing an explosion and resulting in substantial property damage.
  • Century Insurance, the insurer, sought to hold the Transport Board vicariously liable for the damages arising from the employee’s act.
  • The Transport Board argued that the act of lighting a cigarette was a personal and unrelated indulgence outside the scope of employment.
  • The act occurred while the employee was engaged in his work duties.

Issues

  1. Whether the employee’s act of lighting a cigarette during the transfer of petrol was performed within the scope of employment.
  2. Whether the doctrine of vicarious liability applied to hold the employer responsible for the employee’s negligence.
  3. Whether a negligent or unauthorized act sufficiently connected to employment imposes liability on the employer.

Decision

  • The House of Lords held that the act of lighting a cigarette was sufficiently connected to the employee’s duties and occurred during the performance of his work.
  • The employer was held vicariously liable for the employee’s negligent act, as it was deemed incidental to the employment.
  • The doctrine of vicarious liability was applied, clarifying that even unauthorized or negligent acts may fall within the scope of employment if closely connected to an employee’s duties.
  • The foreseeability of the employee’s actions and the risks involved in handling flammable materials were factors in imposing liability on the employer.

Legal Principles

  • Vicarious liability holds employers liable for employees’ wrongful acts committed in the course of employment.
  • The scope of employment includes not only authorized acts but also unauthorized or negligent acts that are closely or sufficiently connected to the employee’s duties.
  • Employers are required to foresee and take measures against risks arising from employees’ actions carried out during the course of employment.
  • The boundaries of employer responsibility are delineated by the close connection test between the wrongful act and employment duties.

Conclusion

The decision in Century Insurance Co Ltd v Northern Ireland Transport Board [1942] AC 509 established that employers can be vicariously liable for negligent acts committed by employees during the course of employment, even if the act was unauthorized or personally motivated, provided it is sufficiently connected to the employee’s duties.

The answers, solutions, explanations, and written content provided on this page represent PastPaperHero's interpretation of academic material and potential responses to given questions. These are not guaranteed to be the only correct or definitive answers or explanations. Alternative valid responses, interpretations, or approaches may exist. If you believe any content is incorrect, outdated, or could be improved, please get in touch with us and we will review and make necessary amendments if we deem it appropriate. As per our terms and conditions, PastPaperHero shall not be held liable or responsible for any consequences arising. This includes, but is not limited to, incorrect answers in assignments, exams, or any form of testing administered by educational institutions or examination boards, as well as any misunderstandings or misapplications of concepts explained in our written content. Users are responsible for verifying that the methods, procedures, and explanations presented align with those taught in their respective educational settings and with current academic standards. While we strive to provide high-quality, accurate, and up-to-date content, PastPaperHero does not guarantee the completeness or accuracy of our written explanations, nor any specific outcomes in academic understanding or testing, whether formal or informal.
No resources available.

Job & Test Prep on a Budget

Compare PastPaperHero's subscription offering to the wider market

PastPaperHero
Monthly Plan
$10
Assessment Day
One-time Fee
$20-39
Job Test Prep
One-time Fee
$90-350

Note the above prices are approximate and based on prices listed on the respective websites as of May 2025. Prices may vary based on location, currency exchange rates, and other factors.

Get unlimited access to thousands of practice questions, flashcards, and detailed explanations. Save over 90% compared to one-time courses while maintaining the flexibility to learn at your own pace.

All-in-one Learning Platform

Everything you need to master your assessments and job tests in one place

  • Comprehensive Content

    Access thousands of fully explained questions and cases across multiple subjects

  • Visual Learning

    Understand complex concepts with intuitive diagrams and flowcharts

  • Focused Practice

    Prepare for assessments with targeted practice materials and expert guidance

  • Personalized Learning

    Track your progress and focus on areas where you need improvement

  • Affordable Access

    Get quality educational resources at a fraction of traditional costs

Tell Us What You Think

Help us improve our resources by sharing your experience

Pleased to share that I have successfully passed the SQE1 exam on 1st attempt. With SQE2 exempted, I’m now one step closer to getting enrolled as a Solicitor of England and Wales! Would like to thank my seniors, colleagues, mentors and friends for all the support during this grueling journey. This is one of the most difficult bar exams in the world to undertake, especially alongside a full time job! So happy to help out any aspirant who may be reading this message! I had prepared from the University of Law SQE Manuals and the AI powered MCQ bank from PastPaperHero.

Saptarshi Chatterjee

Saptarshi Chatterjee

Senior Associate at Trilegal