[2016]DLHC7221 • November 28, 2016 • High Court
KWEKU Y. PAINTSIL, ESQ (PLAINTIFF) vs. DONEWELL INSURANCE CO LTD. (DEFENDANT)
The Plaintiff insured his Mercedes Benz under a comprehensive motor insurance policy with the Defendant. During a heavy flood in Accra on June 3, 2015, the Plaintiff's vehicle was parked at Premier Technic workshop for routine maintenance and was damaged by the flood. The Plaintiff spent GH¢25,000 on repairs and claimed indemnity from the Defendant under the insurance policy. The Defendant denied liability, arguing that the vehicle was in the custody of Premier Technic under a contractual relationship, thus absolving the insurer from liability under the policy's exclusion clause for contractual liability.
read moreLaw of Interpretation –Interpretation of Documents- Insurance policy – Whether the defendant was contractually liable to provide cover for the Plaintiff – It is generally accepted in interpreting insurance policies provisions granting coverage are to be construed broadly while exclusionary clauses are to be given their ordinary meaning and where ambiguity arise interpreted in favour of the insured 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 p...