ICEA Lion fined Sh6.6m over delayed claims pay to trader
ICEA Lion has been ordered to pay a policyholder Sh6.6 million for loss of business after failing to compensate him on time following his vehicle’s involvement in an accident over two decades ago.
ICEA Lion has been ordered to pay a policyholder Sh6.6 million for loss of business after failing to compensate him on time following his vehicle’s involvement in an accident over two decades ago.
Justice Josephine Mong’are directed the underwriter to pay Mr Lawrence Mutiga, who trades as Kimathi Booksellers the money plus an extra Sh2.6 million, which is the balance of the payment the insurer made following the accident in 2011.
Mr Mutiga had informed the court that he used to make Sh25,000 every day collecting sand and delivering it to various clients. He pursued the compensation for seven years.
“I, therefore, find and hold that the plaintiff is entitled to damages for loss of business assessed at Sh.6,625,000/- for the period that the defendant took to pay the insurance claim by the plaintiff,” rule the judge.
The trader told the court that he bought the lorry in September 2010 for Sh.4.5 million and took a comprehensive cover for Sh361,000, from the underwriter.
Mr Mutiga said the vehicle transported sand and building stones from Kajiado to clients in various parts of the country. The truck was involved in an accident on March 13, 2011, and he reported the matter at Bisil Patrol Base in Kajiado, where he obtained a police abstract.
Upon being notified of the accident, the insurer allegedly instructed for the motor vehicle to be towed to Auto-Sueco Ltd and Mr Mutiga contracted an agent to tow the vehicle and paid Sh210,000 for the services.
The trader said the insurance firm offered to settle the claim as per the policy document for Sh3.4 million since the vehicle had been insured comprehensively.
He was notified by his bank later that he had been paid Sh1.88 million yet he expected more money. The insurer, he said, refused to settle the balance.
Mr Mutiga said failure to settle the claim in a timely fashion made him incur losses to his business.
He further said he was never notified to collect the salvage of the vehicle as the same would have been sold to cover the difference of the sum insured.
The insurer denied the claims and said Mr Mutiga reported the accident after 45 days from the date of the alleged accident, which is against the policy conditions that the same be done within seven days after the accident.
And after reporting the accident, the insurer said it lodged its investigations and allegedly discovered that the motor vehicle was not involved in an accident but it developed a mechanical breakdown, which made it decline to settle the claim.
The insurer said the company changed its mind later after negotiations with Mr Mutiga’s agent on ex gratia terms.
