Allied granted stay order over Yacht Tours settlement verdict
Civil Court, back in July, ordered Allied to pay over USD 22 million to Yacht Tours Maldives
A hearing in Allied Insurance’s appeal case at the High Court, was held on October 11
The High Court has issued a stay order on enforcing a Civil Court ruling against Allied Insurance.
Civil Court, back in July, ordered Allied to pay over USD 22 million to Yacht Tours Maldives.
While Kashidhoo constituency MP Abdulla Jabir’s Yacht Tours was given the contract to develop Alidhoo island as a tourist resort, under Allied’s Fire Insurance Policy, the company filed a dispute against the insurance provider for not providing coverage for said damage, despite the company having paid the insurance.
Some of the water villas build were damaged by adverse weather conditions in 2014.
In its ruling, the Civil Court noted that the damages incurred due to the weather can be claimed under the agreement signed between Yacht Tours and Allied Insurance.
Hence, the court ordered the insurance provider to pay USD 22,784,837.59 to Yacht Tours, as per the agreement signed, to be paid off within six months after the ruling; USD 3.7 million to be paid per month.
While Allied Insurance had appealed the lower court ruling at the High Court in August, it requested a stay order on the settlement payment at the first hearing of the case held on October 11. It’s lawyer stressed that if the stay order was not granted, that it could have negative impacts on the country’s insurance industry, and requested a stay order in the matter as practiced in other similar cases.
The judges’ bench had responded that a decision on the matter will be informed to bother parties at a later date and, on Thursday, issued the stay order on paying the compensation.
