Insurance and indemnity

Alfa Insurance consultants Limited v Empire Insurance Group ((Civil App.No.9 Of 1994)) [1996] UGSC 8 (1 February 1996);


Search Summary: 

This was an appeal against the decision of the trail judge on grounds that, the Learned Principal Judge had not considered the case according to the issue that had been framed by the counsel, rather on issues that were unilaterally put forward by counsel for the respondents, and that he failed to find that the appellant had procured the two policy covers and was therefore entitled to the full brokerage commission at 20% and not 7.7%


The respondents argued that the appellant was not contracted and that they had not done full brokerage, thus, they were not entitled to full commission.


It was however noted that to be an efficient broker, it was not necessary to complete all negotiations.

Headnote and Holding: 

The court found that, the appellant company successfully negotiated the package with the client and sold it to the respondent. That the respondents signed the policy documents, and then collected the money in an attempt to reduce the appellant’s commission. The cover flowed from the appellant’s initial efforts and it was therefore entitled to full commission.


Regarding the percentage of commission, it was found that the rate at 20% was too high, the court thus allowed a commission at the rate of 12% on the full insured sum.


Therefore, the appeal was allowed, judgment and decree of the High Court were set aside, interest awarded and costs of the appeal to the appellant.


Subscribe to RSS - Insurance and indemnity