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Mayfair Insurance Company Limited & Teevee Insurance Brokers Limited v. Nakuru Polyplast Limited, Bank of Baroda Kenya Limited, Reliance Metals Limited & Nakuru Press Shop Limited

(2021) JELR 99192 (CA)

Court of Appeal  •  Nyeri Civil Application 50 of 2020  •  19 Feb 2021  •  Kenya

Coram
Roselyn Naliaka Nambuye, Wanjiru Karanja, Fatuma sichale

Judgement

RULING OF THE COURT

1. The genesis of this application is that Nakuru Polyplast Limited (the 1st respondent) entered into an insurance contract dated 1st October, 2015 with the 1st applicant under a policy to cover its property as itemized in the insurance policy for a period of one year running from 1st October, 2015 to 30th September, 2016 for an aggregate sum of Kshs. 64,850,000.

2. On 31st January, 2016 the 1st respondent’s property was destroyed by fire prompting the 1st respondent to lodge a claim of Kshs. 68,500,000 against the 1st applicant pursuant to the aforementioned insurance policy. However, on suspicions of arson, the 1st applicant sent the 1st respondent a letter dated 17th August, 2016 denying liability on the basis that damages through arson did not attach upon the insurance policy.

3. Aggrieved, the 1st respondent instituted a suit before the High Court at Nakuru claiming a sum of Kshs. 68,500,000 as compensation and special damages of Kshs. 2,049,434 plus costs of the…

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