Amaco Insurance has denied claims if failed to pay a claimant Sh15 million.
Mama Rael Memorial Foundation had accused Amaco of breaching an insurance contract and hired Dollar Auctions to raid their offices at NextGen Mall along Mombasa Road in order to recover the money.
The foundation had sought court orders to attach the properties of Amaco for failing to deposit Sh2 million in an interest joint account and a Sh13 million guarantee.
And on February 20, appearing before High Court Judge Msagha Mbogholi, the firm’s lawyer Henry Kurauka said Amaco was yet to pay the said amount to the joint account between Mama Rael Memorial Foundation and the insurance firm.
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Yesterday, the insurer’s Managing Director Elizabeth Koskei said they did not have any direct contractual arrangement with the foundation.
Ms Koskei said they had instead insured Newspace Creators Limited, a contractor with the foundation, with a performance bond of Sh10.5 million.
“Newspace had a contract with the foundation to construct for them a building which is 90 per cent complete. When the contractor failed to deliver, the foundation went to court in 2018 to be paid for damages in full payment,” said Koskei.
The Amaco boss explained that they hired a risk adjustment auditor to carry out an assessment and did a report where contractual pending issues were analysed.
“It was wrong to sue the insurer instead of the contractor. They asked for Sh2 million and a guarantee which we complied with and paid,” she said.
Koskei said it was wrong for the foundation to raid their offices yet the matter was still in court, adding the act was malicious.
“We will later take action on the auctioneers for defaming us,” she said.
Koskei said they were faced with economic conditions but assured their customers that they will ensure claims of genuine customers are paid on time.
“We are highly regulated. However, it is also important to note that stones and sticks are only thrown to fruit-bearing trees. We are on a recovery path but we promise to honour all claims by our genuine customers as soon as possible,” said Koskei.
According to court statements, Amaco was to deposit Sh2 million in an interest earning account in the joint names of advocates representing them and a bank guarantee of Sh13 million within 14 days.
“The ruling on December 5, 2019, is varied in the manner; the order for the deposit of Sh5 million is hereby set aside,” Mbogholi said.
Amaco did not comply but filed another application in January this year to review the order and be allowed to deposit Sh2 million and a guarantee for the balance.
The application was, however, opposed by Kurauka who sought to have it dismissed.
“The application was allowed provided the insurance company deposited Sh5 million in the account in the joint names of the advocates for the parties within 30 days from the date of the ruling,” the court said.
Kurauka claims the joint account that they opened with Amaco last Wednesday is still nil yet the court deadlines for depositing the Sh2 million elapsed.