Econet Insurance Private Limited has dragged Auto and General Insurance Brokers (AGIB) to court demanding $266 571.00 for breach of contract following an agreement in which AGIB was to sell insurance policies and collect premiums from customers on behalf the telecoms firm.
Econet demands $266 571 plus interest thereon at the prescribed rate which is currently 5% per annum, calculated from 30 June 2019.
The terms of the contract were that AGIB would sell insurances policies on behalf of Econet and would collect premiums on behalf of Econet and remit the collections on a monthly basis. AGIB failed to remit the amounts collected from customers on a monthly basis since September 2018 up to date.
“The material terms of the agreement were inter alia, That the Defendant would sell insurance policies on behalf of the Plaintiff and Defendant would collect premiums on behalf of the Plaintiff and remit the collections to the Plaintiff on a monthly basis,” reads part of the summons.
AGIB acknowledged their debt with Econet and paid an arrear of $241 527.54 as at 31 May 2019 but failed to clear the debt as per promise.
“On 3 July 2019, the Defendant acknowledged its indebtedness to the Plaintiff in the sum of $241 527.54 as at 31 May 2019 and made an undertaking to clear the arrears by end of July 20th.
“Despite the acknowledgement of indebtedness and assurance to settle the debt, the Defendant has failed or refused to pay Plaintiff the outstanding sums which now stand at $266 571.00,” reads part of the summons.
The case is pending.