Company ordered to pay customer N10 million

Justice Olufunke Sule-Amzat of the Lagos High Court has ordered Industrial and General Insurance (IGI) Plc., to pay N10,123,873 damages to its customer, John Ifeanyi Nweke, for breach of insurance contract.

The trial judge also ordered that the money would attract 10 per cent interest until it is completely liquidated. The judge ruled that Insurance is a contract, represented by a policy, in which a policyholder receives financial protection or reimbursement against losses from an insurance company.

“Insurance policies hedge against financial losses resulting from accidents, injury, or property damage. Insurance also helps cover costs associated with liability (legal responsibility) for damage or injury caused to a third party.

“A life insurance policy guarantees that the insurer pays a sum of money to your beneficiaries (such as a spouse or children) if you die. In exchange, you pay premiums during your lifetime,” Sule-Amzat explained. Nweke had in June 2021 entered a valid insurance contract with the defendant for a Life Insurance Policies numbered 145258 and 139477.

The claimant validly surrendered the Insurance Policy through an application for surrender dated June 30, 2021, which was delivered to the defendant.
The defendant accepted it and issued a surrender discharge voucher claim C/IDIVPLUS/SUR/15/0006915/2021 and C/IDIVPLUS/SUR/15/0006916/2021 on policy numbers 145258 and 139477 to the claimant, specifying the sums due and payable to the claimant by the defendant.

Counsel to the claimant, Chinwike Ezebube argued that the insurance company breached the contractual term with his client and prayed the court to direct the defendant to pay N5million as damages for economic loss.

Delivering judgment, Justice Sule-Amzat held that the defendant deliberately failed to comply with the clear terms and provisions of the Insurance Act, 2003 by not paying the N10,123,873 surrender claim to the claimant. The judge ordered the defendant to comply with its legal obligation by commencing the immediate payment of the claims.