NAIROBI, August 29 – A policyholder with Old Mutual Life Assurance Company has moved to the High Court seeking judgment over an alleged breach of contract.
Edwin Cheruiyot Kipmutai sued the insurance firm for allegedly failing to honour a 16-month contract amounting to Sh3.2 million.
He claims that he entered into a Personal Financial Contract (PFC) with a Regular Premium Savings Benefit (RPSB), in which he invested Sh200, 000 on a monthly basis between September 1, 2006 and April 1, 2008, and which the company has since breached.
Kipmutai claimed that after the expiry of the contract, Old Mutual rejected his request to abandon the contract, in which he had invested Sh3.2 million shillings by April this year.
Through Kilonzo and Company advocates, Kipmutai told the court that he applied for his dues in April, but the company deliberately refused to honour.
He alleged that the insurer had wrongly and unjustly enriched itself with returns from his hard-earned investment.
According to the complaint, Kipmutai said he was lured into entering the contract by the company’s agent named Rajab Njoroge, who explained numerous portfolios managed by the assurance company.
He further claimed that the company deliberately refused to admit liability or make good his claim even after being served with a notice of intention to sue.
It was argued that the businessman did not agree to any other terms but he was not forewarned of any other conditions for his investment other than the alleged presentations made by the agent.
The aggrieved businessman laid among other prayers a judgment against the Sh3.2 million, an account payment of the returns realised from his investment for the 16 months, together with interests accrued from the date of filing the suit until payment in full.
Major highlights of the contract in question as stipulated in the court papers provided that Kipmutai would make monthly investments described in the contract for (PFC), named ‘Regular Premium Savings’ which had an open end date.
It is stated that under the regular savings benefits schedule, his premium would be invested in units of the company’s balanced portfolio fund.