KWEKU Y. PAINTSIL, ESQ v. DONEWELL INSURANCE CO LTD
2016
HIGH COURT
GHANA
CORAM
- KWEKU T. ACKAAH-BOAFO
Areas of Law
- Insurance Law
- Contract Law
2016
HIGH COURT
GHANA
CORAM
AI Generated Summary
The court ruled in favor of the Plaintiff, stating that the insurer is liable for the cost of repairs under the comprehensive motor insurance policy despite the alleged 'contractual relationship' with the workshop. The insurer's argument was found to be without basis, and the Plaintiff was awarded the claimed amount along with legal costs.
JUDGMENT
Introduction:
[1] This is a dispute between an insured and his insurer concerning re-imbursement for the cost of repairs incurred by the insured because of damage to his vehicle which occurred at the workshop of a third party. The insurer takes the position that a contractual relationship was established between the insured and the owners of the workshop when he took his vehicle there for repairs and therefore the insured is absolved from any claim of liability arising out of the repairs of the vehicle.
[2] The analysis of this issue requires an examination of the terms of the policy, the principles applicable to contractual liability and the governing authorities if any. I will begin with some brief background.
The Facts
[3] On July 30, 2014, the Plaintiff took a comprehensive motor insurance for his Mercedes Benz R320 CDI 2007 with registration number GE 8978-14 with the Defendant Company. The policy was renewed from the initial date until January 6, 2016. During the pendency of the policy on June 3, 2015 there was a heavy downpour in Accra which flooded many parts of the city resulting in loss of life and property. On the day of the flooding, the Plaintiff’s vehicle was parked at the workshop of Premier Technic for what the Plaintiff calls a “routine maintenance checks”. Premier Technic was a casualty of the flood and the Plaintiff’s vehicle was damaged as a result, causing it to be completely inoperable. The Plaintiff says he spent the sum of GH¢25,000 to render the vehicle serviceable.
[4] The Plaintiff made a claim under the policy No. KADMPP 0029291400 for the amount spent. It is the case of the Plaintiff that under the policy, the Defendant agreed to indemnify the Plaintiff in the sum not exceeding GH¢99,000.00 for the loss of or damage to the car. The Defendant denied the claim on the grounds that the Plaintiff was not entitled to the claim because at the material time of the flooding, the car was in the custody of Premier Technic because there was a “contractual relationship” with the Plaintiff and Premier Technic for the maintenance/repair of the car.
[5] On the 30th day of November, 2015 the Plaintiffs issued a Writ of Summons claiming against the Defendant, the judicial reliefs mentioned here below:
i. A declaration that the Defendants are liable to indemnify the Plaintiff in the cost of repairs of the motor car being the sum of GH¢25,000.00;
ii. Legal cost; and
iii. Any other relief or remedy that the Court may de