High Court has overturned the decision of Allied Insurance paying USD 22 million (MVR 339 million) to Yacht Tours Maldives.
Yacht Tours which has the stakes of Kaashidhoo MP Abdulla Jabir had previously run Haa Alifu Atoll Alidhoo Resort. In 2014, the resort faced damages due to bad weather and were refused insurance claims from Allied Insurance. The Civil Court ordered USD 22 million to be paid to Yatch Tours in 2020.
When appealed by Allied Insurance, the High Court ruled that the Yatch Tours could not prove that the damages caused to Alidhoo Resort were as stated in the insurance policy. While the agreement requires Allied to be informed of the damage, the documents do not show that the company has completed it.
There was no way to link the damages to the bad weather due to the lack of dates of the documents submitted by the company. Although Yatch Tours stated that the sea was rough around the area during that period, according to the weather report submitted to the court by Allied sea swells in the area were not rough at the time.
According to the ruling, the damages accounted by Yacht Tours were not caused by bad weather. If the account for the damages cannot proven no decision can be made on the compensation amount.
The High Court ruled that the lower court's decision was overturned. The case was presided over by Judge Mohamed Niyaz and was followed by Judge Hussain Shaheed and Judge Shuaib Hussain Zakariyya.
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