African Banking Corporation limited (ABC) has lost in Sh 35 Million claim.
The Bank had sued and insurance company seeking Sh 35 Million compensation after a former employee allegedly stole the money.
High Court Judge Mary Kasango on July 22,2020 dismissed the banks.
“In the end and in view of the above finding, the plaintiff’s case is dismissed with cost,” ruled Kasango.
She found out that Saham was justified in denying liability under the policy.
Saham Assurance Company Limited had been taken to court by ABC contesting that despite having provided to Saham all the information, the insurer had failed, refused and/or neglected to process payment of the sum due to the plaintiff under the policy.
On Saham declining to honor ABC’s claim ABC filed this case and prays for judgment against Saham for Sh 35,883,591.45 with interest at commercial rate.
It was not denied, in this case, that ABC was insured by Saham, having taken out a Blanket Insurance Policy (the policy) for the period 20th May 2012 to 19th May 2013.
That period of cover was extended and was in place when ABC made a claim in respect to loss it suffered of Sh 35,883,591.45.
That loss was in respect to theft at ABC’s head office Treasury Department, it is admitted by the parties that that loss to ABC was a risk which was covered under the policy.
Saham denied the claim and pleaded by its defense that on receipt a claim from ABC it instructed an insurance adjustor who on investigating established that indeed theft did occur involving infidelity of an employee Boniface WainainaKabue (Boniface) sometimes between 4th April 2012 and 20th August 2014.
Saham pleaded that the policy had an express special exclusion on employee reference warranty which ABC was in breach.
The insurance company also pleaded that ABC was reckless and/or failed in due diligence in respect to its employee Boniface.
Saham pleaded that even if ABC’s claim was admitted the liability was limited to Sh 25 million.