Q & A with FB ATTORNEYS, 26th November 2009 @ 03:06, Total Comments: 2, Hits: 1747
Insurance company won't cover for a damaged machine rescued from fire
Few months ago my factory was gutted down by fire. I did all I could to rescue the items in there including the most expensive asset of all- my machine. My employees risked their lives and assisted in removing the expensive machine in addition to other items. However in removing the machine, because of the speed with which we had to remove it, the machine was damage and whose cost of repair is only 30 per cent of the cost of its replacement, had it burned down. The insurance company now comes back and tells me that I have fire cover but because I moved my machine, the machine is not covered since it did not burn. I wish I had left my machine to burn as it would have been covered. I am really frustrated, please assist.
LK, Dar
We can imagine your frustration. Your good actions have actually landed you in a soup and you probably wish you had let the machine burn.
Your action to reduce the loss is a condition of any insurance policy. It is also not unusual for an insured person to take action which, although aimed at reducing the loss, leads to damage. This does not necessarily break the chain of causation. Indeed the consequence of finding that it did might not suit insurers since it could discourage action to reduce loss.
The issue in your question is whether the damage to your machine is covered under the fire insurance policy. Interpreting it strictly, as the insurance company is probably reading it, the machine is not covered.
However since the damage has been caused as a result of the ‘rescue efforts’ the scope of cover in fire policies is extended to cover this. Additionally you may also claim the expenses you incurred in trying to fight the fire.
As a way forward, you should send in a notice to pay to your insurance company and also inform them that the more they delay the claims settlement, the more you are losing in your business. If they do not bulge do not think twice, go ahead and sue.- you have an excellent suit.
Building in a common area
There are 6 different owners with a common pathway round the block of apartments that I live in. One of the residents in the back has started building on this pathway and hence removed access for the other tenants’ tanks including free movement of the other tenants. What are the rights of the tenants?
SH, Dar
From your question it seems like the area your neighbour is building on or obstructing is a common area which is to be used by all the six owners in the block of apartments you have mentioned.
There is no doubt that the tenants on the upper floors need access to the tanks; from the facts you have availed to us, this building and/or blocking is illegal. It also amounts to nuisance. You can petition in Court to have such nuisance removed and /or get an order for entry or demolition as the case may be.
You may also want to check with the municipal council to see if such construction is legal and whether they have issued a permit. If no permit has been issued, the municipal council has the right to intervene and demolish any such illegal construction.
Conditions and warranties
I am signing a contract that has been drafted by the other party. After reading the contract, I have found some sections reading conditions and other section called warranties. What is the difference between the two? Are there any tricks I need to know before signing a contract?
PP, Musoma
We shall start with your ‘trick’ question. The ‘trick’ is not only to read the contract but also to understand it. If it is drafted in old medieval English, and you seem to understand the words but not the sentences, you better get help from a trained contract specialist. In short, make sure you understand the entire contract before signing.
The terms of a contract have been traditionally classified as either conditions or warranties. A condition is a basic term, non performance of which would render performance of the remaining terms something substantially different from what was originally intended. Consequently, the breach of such a term would entitle the party not in default to treat the contract as repudiated and itself as discharged from performance of all outstanding obligations under the contract. Conversely, a warranty is a minor term, a breach of which can be adequately compensated for by the award of damages. The breach of such a term will not therefore release the innocent party from performance of its contractual obligations. There are no tricks being played in dividing the terms as above. It is a standard drafting practice and it does make practical sense.
Total Comments on the above stories (2)
Comment
hallo! the learned brothers, how are you? Its my hope that you are doing fine. First and foremost, i would like to pay my profound gratitudes for solving different questions posed to you. Am an LLB student at Mzumbe university, now am pursueing my degree in the second year. we have been provided with a question in land law concerning nyarubanja land tenure in kagera, the question goes as follows, ''Although nyarubanja land tenure was typically traditionally land tenure, it had legal backings''. substantiate.
Dear learned brothers the above is the question, indeed i have found it so much intricate! and we have been argued to submit before 3rd of December, may you please provide me with the solution. I hope my request will be concidered.
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