Former Sonesta Beach Hotel boss, David Boyd, has lost his Supreme Court claim against Colonial Medical Insurance Co. Ltd.

The Supreme Court began hearing earlier this year the application by Mr. Boyd for a declaration that he is covered under the hotel's group insurance policy with Colonial in respect of his claim for long term disability benefits.

While it was accepted that the hotelier was insured under the policy, Colonial successfully defended their position that he was not covered for that disability claim.

The Supreme Court could find no provision in the insurance contracts that justified coverage for Mr. Boyd.

Mr. Justice Vincent Meerabux dismissed Mr. Boyd's claim, concluding that the American had received treatment for his illness within 30 days prior to the inception of the insurance policy on April 1, 1996.

He said that Mr. Boyd's claim was excluded from coverage by virtue of section 11 of the policy rider, which deals with exclusions. One such exclusion in the schedule was "pre-existing conditions'', which was defined using the 30 day criteria.

The former hotel president and general manager was a key player in the bid to switch health insurance carriers for 80 Sonesta executive, management and supervisory staff to Colonial Life during a lengthy period spanning 1992 to 1996.

When negotiations were finally concluded in 1996, Sonesta was scheduled to save in initial premiums, $39,000 in the first year.

A hotel communication from Mr. Boyd at the time further stated: "We also feel that the pro-active stance that they (Colonial) take on pre-care management will save additional sums. Further, we will be able to save on our reserve levels.'' Mr. Boyd, a long time and popular Bermuda hotelier, left the Island and the hotel that same year as a result of his illness and moved to the US.

Sonesta vice president and manager Dennis Tucker said at the time that Mr.

Boyd had "ongoing medical problems that are intensifying and making it impossible to fulfil his job responsibilities.'' "It is with regret,'' Mr. Tucker said on June 12, 1996, "that Sonesta Beach resort announces the resignation of David Boyd. The resignation will take effect immediately.'' He had joined the hotel in the early 1970s, before moving on to other Bermuda hotels and returning to Sonesta in 1989.

During hearings that began this February, Mr. Boyd testified that he first noticed his illness, which started off as an ear ache, in June 1986. By June of 1987 he was to have the first of four inner cranial operations.

As a result of his fourth operation, Mr. Boyd said he incurred more severe head, face and neck pain. A 1991 bout with the disease, shingles, left Mr.

Boyd suffering chronic back, knee and calf problems where he would experience acute episodes of pain.

He also told Mr. Justice Meerabux that he suffers from fluctuating high and low blood pressure.

Despite various medical treatments, including steroid therapy and hospitalisation, Mr. Boyd said he decided he could not carry out his duties at the hotel.

And he insisted that he made it clear to Colonial that any insurance policy would have to cover everyone, regardless of their medical history.

Mr. Boyd testified that he also told Colonial that he had a neurological problem which caused daily chronic pain and that he was concerned about long-term disability.

Jai Pachai of Appleby, Spurling & Kempe represented Mr. Boyd. Saul Froomkin QC and John Cooper represented Colonial Medical Insurance Co. Ltd.

Mr. Justice Meerabux David Boyd COURTS CTS