Case Summary and Issue for Reflections - Formality requirement in Insurance Contract


{tip title="The Case" content="In this case the applicant was the Ethiopia insurance company and respondant was Benshangul Gumuz Burea. Panel judges of federal supreme cassation court were Ato Abdulkadir Mohammed, w/ro Hirut Melese, Ato. Tafesse Yirega, Ato. Medhineh Kiros and Ato. Sultan Abate."}The Case{/tip}

The case involves the failure to comply with the formality requirements more specifically the failure of witnesses and parties to the contract to put signature on insurance policy as ground for non-existence of contract of insurance.  Asosa Zonal court upheld that there is no contract of insurance because signature is missed. The Higher Court confirms the decision of the Zonal court. Then Ethiopia Insurance Company appeal against this judgment by alleging that there is fundamental and basic error of law.

Material facts

  1. The respondent expresses its desire to insure its ten vehicles by written letter contain the signature of manager and seal of the authority.
  2. After receiving a written letter from the authority, the insurer i.e. Ethiopia Insurance Company issues policy and sign on it.
  3. The insured i.e. Benshangule Gumuz Bureau was not signed on the insurance policy.
  4. The contract was not attested by witnesses.
  5. The insured is not willing to pay the premium which is 55, 068.56 Birr.


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