Insurance company ICEA Lion has been ordered to pay a sand seller over Sh9.2 million for loss of his business which he had insured with underwriter.
Justice Jackline Mongare ordered the insurer to pay Lawrence Mutiga who trades as Kimathi Booksellers the amount, for loss of business after the company failed to compensate him for his motor vehicle which was involved in an accident in Kajiado county.
Mutiga sued the insurer over Sh66 million compensation for loss and damages incurred after the insurer failed to pay the full amount of the motor vehicle, which was involved in the accident.
Mutiga had sought to be paid Sh2.6 million as balance for compensation for vehicle and Sh63.9 million for loss of business.
Mutiga testified that he was at all material times the registered owner of the motor vehicle Volvo Tipper which he had purchased on August 3, 2010 for Sh4.5 million through a partial finance by Diamond Trust Bank Limited of Sh1,440,000.
He testified that he also purchased a Comprehensive Insurance Cover for the motor vehicle for Sh361,000 from ICEA and was issued with a policy number.
“As his evidence, Mutiga produced to the court the Debit note and the Insurance Policy Documents with the period running from 3rd August 2010 to 2 August 2011,” the judge said.
He further testified that he used the motor vehicle for delivery of river sand which would be collected from various rivers.
The lorry was involved in an accident on March 13, 2011 in Kajiado County while out collecting sand. His driver reported the accident first at Bisil Police Patrol Base and he notified the insurance company. He later obtained a police abstract.
He testified that upon being notified of the accident to the Motor vehicle, ICEA Insurance instructed that the Motor vehicle be towed to Auto-Sueco Limited premises and the same was done.
Mutiga contracted Njohmu Suppliers and incurred towing charges amounting to Sh210.000.
It was his evidence that subsequently, the insurer offered to settle the claim as per the policy document on 18th June 2012 for the sum of Sh3.4 million but Mutiga declined since his vehicle had been insured comprehensively for Sh4.4 million.
He was later notified by his bank that he had been paid Sh1,882,100 by the ICEA.
ICEA Insurance confirmed that indeed Mutiga had insured his motor vehicle with comprehensive insurance through an insurance agent, Diamond trust Insurance Agency Limited.
The company confirmed that the said motor vehicle was insured for Sh4.5 million being also the purchase price for the motor vehicle and that Mutiga paid a premium of Sh361,000.
The company testified that the Plaintiff reported the accident after 45 days from the date of the alleged accident and contrary to the policy conditions that the same be done within 7 days after the occurrence of an accident.