Customer accuses Leadway insurance company of fraud over multi-million dollar Naira claims about damaged vehicle

Customer accuses Leadway insurance company of fraud over multi-million dollar Naira claims about damaged vehicle

He described the company’s attitude and disposition towards his claim as frightening, disappointing, annoying and frustrating.

According to SaharaReporters, Jolayemi Woleola, a man based in Abuja, has accused an insurance company, the Leadway Assurance Company, of fraud.

He described the company’s attitude and disposition towards his claim as frightening, disappointing, annoying and frustrating.

In documents obtained by SaharaReporters, Jolayemi claimed that the Leadway Assurance Company made several excuses and lies to avoid fulfilling their obligations towards him.

The statement reads in part, “I have a vehicle insurance contract with Leadway that covers my 2017 Mercedes Benz E 300 model. The insured car was involved in a trailer accident on the Kubwa express in Abuja on 23/07/2021.

“I submitted my application to Leadway after relevant documents such as the police report were issued. Leadway Insurance maliciously refused to reintegrate me into the position I was in prior to the accident.

“Leadway invented excuses including lies to refuse to fulfill their obligation to me.

“Leadway started by questioning the veracity of an incident that threatened my life with genuine lies that he claimed to visit the hospital where I was treated for bleeding and was told that no patients were treated. that day to distort glaring facts about the value of the Vehicle prior to the insurance itself.

“They didn’t go to the hospital and lied that they went there. When I got back to the hospital, I requested CCTV footage of the day I arrived at the hospital, the hospital management asked me why and I showed them the Leadway letter.

“The hospital said no one came to their hospital and they said they don’t even discuss their patients’ medical reports or stories with third parties. They decided to issue me a medical report which I sent back to Leadway.

“The company went so far as to make false accusations against me just in an attempt to unfairly refuse to restore my vehicle to the position it was in prior to the accident.

“The request that I want the vehicle to be repaired instead of being paid in cash for the claim was also handled reluctantly by Leadway. I think it is pertinent to let the world know about Leadway’s policy on insurance claims as evidenced by my situation.

“The pertinent question is: with an attitude like that shown by Leadway, what is the hope for insurance and the provision of adequate / efficient services in Nigeria.”

“At a time when public perception of the concept of insurance as a financial instrument of protection is low and the Nigerian government’s effort to improve service delivery in the insurance sector and build trust in the sector, Leadway’s attitude and disposition as a major player in that industry it is scary, disappointing, annoying and frustrating “ He added.

But in a letter to Jolayemi Woleola of Leadway Assurance Company, dated September 10, 2021 and signed by Okanke Eze of the complaints department and E.0. Soje for Divisional Director, the company accused the policyholder of having violated “the terms and conditions of the policy that guide the insurance principles”.

In the letter entitled “Subject: Our complaint n .: AB21C000098PM Our policy n .: PM210002781 Accident AB involving Mercedes Benz E 300 with n. RBC 123 BL on 07/23/2021 Insured: JOLAYEMI WOLEOLA, “Leadway said it would offer only N3,769,941.56, which translates into a payment of N3,711,755.09 after deduction for“ Less than 1 , 75% for the improvement of the replaced articles “.

Among other things, he said “You told us that the vehicle was purchased in April 2021 and the first service was done in Lagos before taking it to Abuja. However, we found that the vehicle was auctioned on 08/09/2020 with primary damage to the front, secondary damage to the right front and airbags not reinstalled. Since it is an accident vehicle, the maximum value of the insured sum is N7,250,000.00 against the insured sum of N15 million placed on it.

“You will agree that this is a false representation of the facts and a violation of the utmost good faith that goes to the root of every insurance contract and renders the contract null and void from the beginning.

“We also observed that a repair estimate of N13,443,982,77 from Mercedes Benz, Barbados was presented to us when you know perfectly well that you have no maintenance records with them. You can refer to the maintenance workshop clause in your policy which states that “You represent and agree that in the event of an accident involving the vehicle covered by this policy, the policyholder is limited to obtaining an estimate of the repairs from the workshop maintenance contractor in charge of regular maintenance or repair activities for at least six (6) months prior to the accident or loss. ‘

“In the meantime, we found that Mercedes Benz E 300 car repairs were usually done at Dawab Auto repairs located along Kubwa Express Abuja. Therefore, going to Barbados other than your usual repair garage is a clue that you want to profit from the insurance. This act is also against insurance principles as the purpose of insurance is to compensate you by putting you in the position you were in immediately prior to the loss. “

In another letter to Jolayemi Woleola dated October 5, 2021 and signed by Okanke Eze of the Complaints Department and Onasanya Mustapha for Division Director, Leadway Assurance Company stated: “We refer to your mail dated September 17, 2021 and the letter dated September 15, 2021 respectively in which you rejected our offer of N3,769,941.56 given to you without prejudice.

“However, we have reviewed all the receipts and invoices that you have attached to your reference letter and also indicate that you have hidden material facts about the vehicle before making sure the same with us. The implication of the ab initio concealment of material facts enables the repudiation of the claim as this renders the contract null and void ”.

He insisted that he would not improve his offer, saying, “In consideration of the foregoing, we have kindly granted the complaint by offering you an offer rather than a complete repudiation of the complaint as such, we will not be able to improve the transaction offer and will invite you to execute the previously sent unloading voucher a to allow us to conclude the action on the complaint and mark our case as closed. We look forward to hearing from you shortly. “

He further said, “We inform you that you have violated the principle of the utmost good faith as you have made underwriters believe that you have just purchased the car in April 2021 and that you still had to register it in Barbados before you insured with us.

“You told us the same thing about the first and second statements. You stated in your mail of 9 June 2021 and 13 August 2021 respectively that you have just bought the car in April 2021 and have carried out the first maintenance in Lagos before taking the car to Abuja and the service lasts 6 months, which makes you not register with Barbados before the accident happened. ‘

“You never told us that the car was a crashed vehicle and that you had repairs done on it prior to insurance coverage, as is evident in your reference emails. This act is misleading as you already know that the crashed vehicle you purchased via Custom Auction in September 2020 has many issues ranging from key issues, airbags and other internal issues that underwriters cannot see during the pre-loss physical inspection and these information was hidden.

“To further certify that you want to profit from the insurance, some of the items that are still needed to repair the car now in the current damaged condition, the parts that were purchased at N50,000.00, you have brought an estimate from Barbados by charging over N400,000.00 for the same parts.

“The side mirror you replaced for N150,000.00, you want us to pay N736,215.00 and N286,693.00 for the low arm which is sold for N80,000.00 in the shop where you bought the same before and you are aware that the parts are still available. (Attached is a copy of Kris-Mekino Investment Co. Ltd.’s repair estimate dated 23 September 2021 confirming the same amount for these items). We have established from various documents that you have carried out massive repairs in Lagos with reasonable cost. It is important to note that the purpose of the insurance is to compensate you by putting you in the position you were in immediately prior to the loss. The reason why we made you a suitable offer to get the car back to its position before the alleged accident. “

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