SA govt sues local insurance firm over BMW

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THE South African government has approached the Zimbabwean High Court seeking to compel Sanctuary Insurance Company to compensate it $14 679 for the damages and loss of its BMW.

THE South African government has approached the Zimbabwean High Court seeking to compel Sanctuary Insurance Company to compensate it $14 679 for the damages and loss of its BMW.

BY CHARLES LAITON

According to the South African government, the said 2006-make BMW was declared a write-off in an accident.

The vehicle had been insured by Sanctuary Insurance.

In the summons issued under case number HC402/16 on January 18 this year, the government of the Republic of South Africa is cited as the plaintiff in the matter, while the insurance firm is cited as the defendant.

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In its declaration, the South African government said: “With effect from April 1, 2015, the defendant undertook, in terms of its standard policy of insurance, to insure plaintiff’s motor vehicle, being a 2006 BMW (registration number 69 CD), against the risks mentioned in the said policy of insurance, one of them being loss of or damage to the vehicle.”

The neighbouring government further said on May 23 last year, its motor vehicle was damaged beyond repair in an accident and the information was submitted to the insurance firm, but the latter was allegedly reluctant to pay for the vehicle.

“The extent of the damages or loss suffered by the plaintiff as a result of the damage to its motor vehicle was the sum of $15 134, being the reasonable market value thereof immediately before it was damaged,” the South African government said.

“Plaintiff has dully notified defendant of the said motor vehicle accident and the damage to its motor vehicle and has, in all other respects, complied with its obligations under the policy.

“Despite this, defendant has refused to make any payment to plaintiff in respect of the damage to its motor vehicle.”

Sanctuary Insurance firm, however, has since entered its appearance to defend notice and is prepared to challenge the South African government over the claim.