VANGUARD ASSURANCE CO. LTD. & ANOR v. EXPOM GHANA LIMITED
2015
COURT OF APPEAL
GHANA
CORAM
- KUSI-APPIAH, (PRESIDING)
- ADUAMA OSEI, J.A.
- WELBOURNE (MRS.), J.A
Areas of Law
- Insurance Law
2015
COURT OF APPEAL
GHANA
CORAM
AI Generated Summary
The appeal reversed the High Court's judgment favoring the plaintiff by holding that the plaintiff breached the security warranty in their insurance policy. Consequently, the insurer was automatically discharged from liability.
KUSI-APPIAH, J.A:
This appeal arises from the judgment of the High Court, (Commercial Division), Accra, dated 8th day of January, 2013 entered in favour of the plaintiff/respondent (hereinafter referred to as the respondent) against the 1st defendant/appellant (hereinafter referred to as the appellant).
The case of the plaintiff (now the respondent) as gathered from its pleadings and especially evidence at the trial, is that, the respondent is a company incorporated under the laws of Ghana and carries on business as a food processing company. The respondent through the 2nd defendant (Tri-Star Insurance Services), took an insurance policy with the appellant, Vanguard Assurance sometime in 2006. The policy was subsequently renewed yearly, the latest being for the period 20th November, 2009 to 20th November, 2010 against loss or damage by fire, up to the sum of five million Euros (€5,000,000.00) as follows:
“All real and personal property of every kind and description of Expom Ghana Limited’s own or for which they may be held liable or responsible including but limited to buildings, plants, machinery, stocks, inventory and equipment as detailed below as well as public and products liability.”
On 10th May, 2010 at about 1.35am, fire guttered drums and bins of raw materials of tomato paste which respondent had packed in the yard on its premises. Respondent made a claim on appellant who repudiated liability on the basis that the respondent had deliberately set fire to the raw materials in order to make a fraudulent claim. The respondent therefore issued a writ of summons in the High Court claiming:
i. “A declaration that defendants are liable to indemnify plaintiff for the loss and damage suffered by plaintiff as a result of the fire that damaged plaintiffs raw materials and goods on 10/05/10.
ii. A declaration that under and by virtue of the insurance contract between plaintiff and 1st defendant, 1st defendant is under an obligation to indemnify plaintiff in respect of all costs incurred by plaintiff in cleansing the debris left as a result of the fire incident that destroyed plaintiffs raw materials and goods on 10/5/10.
iii. An order directed at the defendants to pay forthwith to plaintiff the sum of four million, nine hundred and forty-two thousand, three hundred and eleven Euros, fifty-three Euro cents (€4,942,311.53) being the value of raw materials and goods damaged by the fire which occurred on plaintiffs premises on 10/5/10.
iv. An order directe