CASE TITLE: PRESTIGE ASSURANCE PLC & ANOR v. SARA PRODUCT LTD & ANOR (2026) LPELR-84020(CA)
JUDGMENT DATE: 3RD JUNE 2026
PRACTICE AREA: INSURANCE LAW
LEAD JUDGMENT: UWABUNKEONYE ONWOSI, J.C.A.
SUMMARY OF JUDGMENT:
INTRODUCTION:
This appeal borders on Insurance Law.
FACTS:
This is an appeal against the judgment of the High Court of Lagos State, sitting at the Lagos Judicial Division, delivered on the 17th day of June, 2019.
The 1st Respondent entered into a fire insurance contract with the 1st Appellant as lead insurer, the 2nd Appellant as co-insurer, and the 2nd Respondent as another co-insurer. Upon renewal of the policy for the period 1 September 2008 to 1 September 2009, the 1st Respondent issued eight monthly post-dated cheques covering a premium of N5,787,799, payable through April 2009. Before four of the cheques matured, a fire destroyed the 1st Respondent’s business premises. The insurers appointed Benevolent Loss Adjusters Ltd. to investigate the loss. In its report of 20 July 2009, the adjuster advised that the claim should not be honoured, alleging breach of policy warranties and attributing the fire to the 1st Respondent.
The 1st Respondent commenced an action seeking declarations that it was entitled to indemnity under the fire policy and that the insurers’ repudiation of the claim was wrong and in breach of contract. He also sought payment of N901,981,400.15 (or alternatively N875,000,000.00, the sum insured) and interest. The trial Court entered judgment for the 1st Respondent and awarded N309,790,603.12 with 10% post-judgment interest.
Dissatisfied with the decision of the trial Court, the Appellants filed this appeal.
ISSUES FOR DETERMINATION:
The Court determined the appeal on the following issues:
1. Whether the 1st Respondent paid a premium to the Appellants and the 2nd Respondent in order to create a valid contract of insurance in dispute so that the 1st Respondent would be entitled to the reliefs sought at the Trial Court?
2. Whether the 1st Respondent has breached the warranties in the contract of insurance in dispute?
DECISION/HELD:
The appeal was allowed.
RATIOS:
- APPEAL- INTERLOCUTORY APPEAL: Whether parties or an appellate Court can delve into a substantive matter in the determination of an interlocutory appeal
- EVIDENCE- EXPERT OPINION/EVIDENCE: The need for Court to be wary of admitting a report prepared by an expert at the instance of any of the parties to the dispute
- INSURANCE- PREMIUM: Whether the issuance of post-dated cheques fulfills the condition of payment of premium in advance where all the cheques had not cleared/matured on the date of the occurrence of the risk insured against
- INSURANCE- CONTRACT OF INSURANCE: Whether payment of premium is a condition precedent to a valid contract of insurance
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