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Thursday, March 23, 2023

AIICO Insurance Exposed to N4bn Claims Due to 31 Outstanding Court Cases

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AIICO Insurance Plc has 31 outstanding cases in court that amounted to claims of N4 billion as at December 2021, according to data from the audited financial statements.

The company operates in the insurance industry and is subject to legal proceedings in the normal course of business.

The good tidings are that the Directors, having sought legal opinion, are of the view that insurer stands a good chance on those cases and hence do not foresee those cases having any material effect on the its results and financial position.

Some time ago, AIICO Insurance Plc filed a suit against Megamound Investment Limited and Indemnity Finance Limited (“the defendants”) for the recovery of its outstanding loan plus interest of N1.4 billion.

The insurer won the case and the court ordered that the defendant execute and deliver a property in respect of the 1.5 hectares of land at Lekki County Home Estate it had allocated to the claimant (AIICO) in 2007.

However, the management of Lekki County Estate obstructed AIICO from taking possession of the allocated land and also harassed and assaulted its staff.

Consequently, AIICO has not recognized this recovered land in its books but has hereby made disclosure of its existence while filing requisite actions including Contempt of Court proceedings against the management of Lekki County Estate.

Nigerian insurers are seeing a jump in litigation and obligations towards policyholders have been mounting.

The Court of Appeal, Lagos division has dismissed the appeal filed by Great Nigeria Insurance (GNI) Plc against the decision of a Lagos High Court, which ordered it to pay N17 million insurance claim to its customer, Zeal Trust Limited.

The firm had sued the appellant at the lower court, in suit marked LD/1776/2011, claiming that the defendant/appellant’s repudiation of its claim under the contract of insurance was unlawful.

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