KENYA ALLIANCE INSURANCE COMPANY LTD V. PARKLANDS SHADE HOTEL LIMITED & BROKERS (K) LIMITED

IN THE COURT OF APPEAL

AT NAIROBI

(CORAM: GITHINJI, MWILU and KANTAI, JJ.A)

CIVIL APPEAL NO. 198 OF 2008

BETWEEN

KENYA ALLIANCE INSURANCE COMPANY LTD .................APPELLANT

AND

PARKLANDS SHADE HOTEL LIMITED...........................1^ST RESPONDENT

PELICAN INSURANCE BROKERS (K) LIMITED ........... 2^ND RESPONDENT

(Being an appeal from the judgment and decree of the High Court of Kenya at Nairobi (Honourable Mr. Justice J.G. Nyamu) dated 25^th February 2008

in

HCCC NO. 281 OF 2002`)

***********

JUDGMENT OF MWILU, J.A

1. The 1^st respondent, hereinafter referred to as the insured, took out a Fidelity Guarantee Insurance policy from the appellant (hereinafter referred to as the insurer), through the 2^nd respondent (hereinafter referred to as the broker), insurance broker. A policy contract number 01/FG03592 was executed by the parties on 21^st May 1997. Under the policy, the insurer agreed to cover loss which the insured might sustain by an act of fraud, theft or dishonesty committed by any of the insu…