Logistics firm seeks to wind up insurer in claims dispute

Rajinder Singh, owner of Multiple Hauliers EA. PHOTO | FILE 

By LYNET IGADWAH

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A logistics company has initiated winding up proceedings against Xplico Insurance Limited, citing breach of contract and failure to honour claims.

Multiple Hauliers EA Limited is further demanding that the insurance firm pays Sh55.6 million in
policy claims it has incurred through paying third parties as a result of direct risk.

“We write to reiterate that Xplico Insurance Limited be wound up for their inability to honour claims against us and their continued solicitation of unsuspecting clients,” said the logistics firm in a letter addressed to the Insurance Regulatory Authority and copied to the Treasury.

Multiple Hauliers claims failure by Xplico to honour policies led to impounding and parking of its trucks for days, resulting in loss of business.

Both parties had held meetings in the past attended by the ICK Insurance Brokers where it had been agreed that the claims be settled in instalments.

“Unfortunately Xplico responds with cheques which when presented for cashing in the banks have bounced,” read the letter dated January 31 and stamped ‘very urgent’.

Multiple Hauliers said on several occasions it had been forced to clear with auctioneers and decree holders to assuage embarrassment.

The firm said in the interim it currently faces at least three claims where auctioneers have already proclaimed it property and are awaiting attachment at the expiry of grace period.

The insurance contract between the two parties was entered into on April 1 2013 under which Xplico committed to cover the logistics firm from all risks per year under renewable terms.

Failure by Xplico to honour its end of the bargain had seen Multiple Hauliers write to the insurance firm a winding up notice last November.

At the time, the logistics firm issued a five-day notice to Xplico and warned that failure to comply with its demand would see it initiate winding up proceedings against it under the Companies Act.

Multiple Hauliers also issued notice to ICK Insurance Brokers Limited that it would commence recovery proceedings against it without further notice.

“This is borne out of your misadvise to us regarding the credibility and health of Xplico Insurance Company Limited and also your commission and omission in this matters recovery,” read the November 2016 winding up notice.