This archive report was first published on 9 October 2019.
On October 9, 2019, a court ruling ordered Trident Insurance company to pay Saham Assurance Company Sh33.4 million with interest for failing to compensate Tuskys Supermarkets over a 2015 fire incident.
Trident had agreed to reinsure the risk up to 40 per cent for Tuskys, which was insured by Saham for the period between March 1, 2015, and March 1, 2016.
However, when one of Tuskys' branches caught fire in May 2015, Trident failed to honour claims payment, resulting in a loss of Sh72.7 million for the supermarket.
Trident then failed to put up a defence in court as to why it breached the contract.
According to the court ruling, the plaintiff, Saham Assurance Company, had made several demands for settlement of the amount due, but the defendant, Trident Insurance company, had failed to settle the same.
The judge ruled that since there was no defence to the plaintiff's claim and because the plaintiff's claim was supported by documents, the plaintiff's claim was merited.
Trident will, therefore, be expected to pay the sum plus interest at the court rate from the date of filing suit in 2017 until payment in full. The prevailing court interest rate is 12 per cent per year, calculated on a simple interest basis.
