Great Nigeria Insurance Plc has appealed the decision of an Ogun State High Court sitting in Ijebu-Ode ordering it to pay Ade Distribution and Investment Company Limited a total of N16,056,370.
On July 5, 2018, Justice Akinbiyi awarded the sum as the amount due to Ade Distribution both for the cost of the burglary insurance policy it had taken out with Great Nigeria Insurance as well as damages assessed by the court. The court found that Alhaji Femi Oluderu, trading under Fikemot Nigeria Enterprises, acted as an agent of Great Nigeria Insurance in the transaction.
The case stemmed from events in late 2012 when Bella Abiodun, CEO of Ade Distribution, was approached by Oluderu to insure his nearly completed warehouse and corporate office and the goods stored there with Great Nigeria Insurance. Policy documents were issued to Ade Distribution through Oluderu on December 20, 2012. Ade Distribution paid a total premium of N117,938, of which N97,125 was to cover the burglary policy.
On January 14, 2013, armed robbers raided Ade Distribution’s warehouse and office, carting away goods worth N15,956,570. Abiodun notified Great Nigeria Insurance of the incident and submitted a claim form. The insurance company initially sympathized and appointed loss adjusters to investigate. However, it later denied liability, claiming Ade Distribution had not paid the premium before the robbery.
In the lawsuit filed on September 13, 2013, Abiodun stated he had provided Great Nigeria Insurance with a police report on the incident. He said the insurer stopped responding to his correspondence until his lawyer intervened. In its July 17, 2013 reply, the insurance company denied liability based on the “No Premium No Cover” principle and also claimed Oluderu was not its agent.
Abiodun told the court Great Nigeria Insurance’s action put his business at great risk as he could no longer meet customer obligations, impacting his operations negatively.
In its defense, Great Nigeria Insurance argued that Oluderu was a canvassing agent expected to comply with National Insurance Commission registration requirements and was not authorized to collect premiums in his own name. It said Ade Distribution was required to pay the N97,125 premium before November 20, 2012 when coverage was to begin.
The insurer claimed the premium was only paid by Abiodun after the burglary, via a bank check to Oluderu, who delivered it to the insurance company on January 18, 2013. Great Nigeria Insurance thus maintained it was not liable for the claim.
However, Justice Akinbiyi ruled that Oluderu was acting as Great Nigeria Insurance’s agent, Ade Distribution had fulfilled all policy conditions, and Great Nigeria was liable for the N15.9 million loss plus additional damages, totaling N16,056,370.
In its appeal filed on February 11, 2019, Great Nigeria argued that Justice Akinbiyi disregarded evidence that Ade Distribution failed to pay the premium before coverage started and the payment after the loss did not meet statutory requirements. It also disputed the court’s finding that Oluderu was its agent.
Ade Distribution’s counsel maintained the trial court correctly ruled that Oluderu was Great Nigeria’s agent based on his actions throughout the process and the various ways an agency relationship can be created. He argued Great Nigeria Insurance should be estopped from denying Oluderu’s status as its agent.
The appeal was set to be heard on October 8, 2024 at the Ibadan division of the Court of Appeal, but the court did not sit on that date. The case is still pending with no new hearing date fixed yet.