Icea Lion General Insurance Company Limited v Shark Media Limited (Appeal 2 of 2022)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The Insurance Appeals Tribunal struck out an appeal filed by an insurer against a decision of the Insurance Regulatory Authority on the ground that the appeal was filed outside the one-month time limit prescribed by section 137(1) of the Insurance Act 2017 and regulation 9(3) of the Insurance Appeals Tribunal Regulations 2019. The Tribunal held that the time limits are mandatory, are a matter of substantive law, and must be strictly complied with. The Tribunal found that a letter expressing dissatisfaction with the IRA decision did not constitute a valid appeal in the prescribed form, and that the appellant's delay of almost a year extinguished the Tribunal's jurisdiction.
Outcome
Appeal struck out for being filed out of time; IRA decision upheld; appellant ordered to pay the claim with interest and costs.
Facts
The respondent purchased an all-risk insurance policy from the appellant. On 10 April 2019, the respondent suffered a power surge at its business premises which damaged a double sheet sensor in an SM 74 printing machine. The respondent filed a claim for USD 15,400 for replacement of the sensors. The appellant commissioned an external loss assessor who recommended payment of UGX 51,980,267. Dissatisfied, the appellant conducted an internal assessment seven months later which concluded that only USD 4,200 was payable. The respondent complained to the Insurance Regulatory Authority (IRA), which commissioned an independent investigation. On 25 November 2021, IRA ruled out fraud and ordered the appellant to honour the claim as presented. The appellant expressed dissatisfaction by letter dated 1 December 2021 but did not file a formal appeal until 6 October 2022, after IRA issued an ultimatum threatening enforcement action.
Issues
- Whether the Tribunal has jurisdiction to entertain this appeal?
- Whether the report of IRA fraud Unit should be set aside for non-compliance with the rules of Natural Justice?
- Whether the Respondent's claim of USD 15,400 is payable?
Orders
- The appeal is struck out.
- The decision by the Insurance Regulatory Authority is upheld.
- The Appellant is ordered to pay the claim presented by the Respondent.
- The Appellant is ordered to pay interest at the rate of 6% per annum from 25 January 2022 until payment in full.
- Costs of this appeal are awarded to the respondent.
- Should there be failure by the Appellant to adhere to the orders, IRA is directed to take such action as may be appropriate under the Insurance Act No. 6 of 2017 against the Appellant to ensure compliance with these orders.
Rules and key headnotes
Legislation cited (9)
- Insurance Act No. 6 of 2017 s.136
- Insurance Act No. 6 of 2017 s.137
- Insurance Act No. 6 of 2017 s.137(1)
- Insurance Act No. 6 of 2017 s.45
- Insurance Appeals Tribunal Regulations 2019 r.9
- Insurance Appeals Tribunal Regulations 2019 r.9(1)
- Insurance Appeals Tribunal Regulations 2019 r.9(3)
- Insurance Appeals Tribunal Regulations 2019 r.9(4)
- Public Procurement and Disposal of Public Assets Act 2003
Cases cited (1)
- Mugerwa Fred v Sembabule District Local Government (Public Procurement and Disposal of Public Assets Appeals Tribunal Appeal No. 23 of 2022)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.