[2016]DLHC3771 • June 29, 2016 • High Court
DANNY PRAISE COMPUTERS vs. SIC INSURANCE COMPANY LIMITED
The plaintiff, Danny Praise Computers, a limited liability company with branches across Ghana, took out burglary insurance policies with the defendant, SIC Insurance Company Limited, covering five business premises in Accra and Kumasi. One of the premises at Forico Shopping Mall, Osu, Accra, was burgled around midnight on 29/12/2013 to 30/12/2013, resulting in the theft of goods valued at approximately GH¢39,232. The plaintiff alleged that the night watchman was absent for one night due to ill health without notice, during which the burglary occurred. The defendant repudiated the claim on the basis that the plaintiff breached a watchman warranty clause requiring continuous presence of a night watchman or caretaker when the premises are closed.
read moreIn this judgment, the court will among other things consider the nature and legal effect of warranties and conditions in Insurance Contracts as opposed to General Contracts. This case arose from a misunderstanding and/ or misinterpretation of certain conditions and endorsements in a burglary insurance policy as a result of which the insurer has repudiated the claim. To begin with, I will like to draw the attention of the disputants to a constructive observation made by the Supreme Court, speaking through Apaloo C.J. in GHANA UNION ASSURANCE CO., LTD. v. ASSAD FAKHRY AND SONS [1981] GLR 634. Perhaps, this statement will prepare the parties to better appreciate their respective positions right from the onset. His Lordship stated: "There is one observation we feel obliged to make. Formal written contracts of insurance with their numerous conditions and endorsements are highly technical legal documents hardly comprehensible to a layman. Experience shows that the policies are normally r...