Harare man wants US$10k from insurance firm

A HARARE man has approached the High Court demanding US$10 500 from Nicoz Diamond Insurance Company (Nicoz Diamond) after his car that he had insured with the firm was in an accident.

Harold Makokoro told the court that he entered into a comprehensive cover agreement with Nicoz Diamond for a Mercedes Benz he had purchased and imported through the disability rebate facility.

“The defendant (Nicoz Diamond) insured the plaintiff’s motor vehicle under comprehensive cover insurance fully aware of the suspensive condition attached to it.

“The plaintiff’s motor vehicle was involved in an accident before the suspensive period had lapsed and he sought compensation from the defendant.

“On the 5th of September 2019, the plaintiff and the defendant novated and entered into a written agreement of total loss acceptance, in terms of which the defendant agreed to pay the plaintiff for his damaged motor vehicle,” Makokoro said.

He said after the accident, the insurance company refused to pay back half of the insurance claim and instead informed him of their intention to cancel the agreement.

“The material terms of the agreement were that the defendant would pay the plaintiff a sum of US$20 346.

“A balance of US$10 500 was to be paid subject to the condition that the defendant would seek approval from the Zimbabwe Revenue Authority (Zimra) to dispose of the said vehicle.

“The condition precedent is still to be fulfilled and the defendant has communicated in writing its intention not to remain bound by the agreement thereby unilaterally repudiating from the agreement,” he said.

A motor vehicle on which duty has been suspended can not be disposed of by the importer within five years of its importation unless the Zimra commissioner general has given written permission for its disposal, and the suspended duty has been paid.

Makokoro said Nicoz Diamond’s refusal to pay the money had caused him financial damage.

The insurance firm is yet to respond to the application, which is still pending before the High Court.

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