Panafrica Insurance v Kenya N Alliance Insurance Company Ltd [2016] KEHC 8564 (KLR)

Summary at a glance

Facts

The defendant provided a re-insurance policy to the plaintiff for insurance cover provided to the Kenya Ports Authority. An accident occurred resulting in substantial damage to goods, leading to a lawsuit against the Kenya Ports Authority. The plaintiff paid US$257,064.96 plus interest and costs to the Kenya Ports Authority, exceeding the policy limit by Kshs. 2,030,000/-.

Issues

• Whether the defendant is liable for the excess amount paid by the plaintiff to the Kenya Ports Authority
• Whether the plaintiff can recover interest and costs from the defendant

Reasoning

The court held that the defendant's liability is limited to the policy limit of Kshs. 6,000,000/-, and any excess amount paid by the plaintiff to the Kenya Ports Authority is not recoverable from the reinsurers.

Outcome

Appeal dismissed with costs

Authorities cited