JB Ghana Limited is a company incorporated as a private limited liability company under the laws of

Ghana. The company is into the manufacturing of diapers in Kpone near Tema.

The company has a lot of retailers and wholesalers that purchase directly from them. Since its

inception the company has not insurance its machinery and equipment.

The company recently recruited Frank Amponsah as its Legal Manager effective 1 May 2019. Frank

has advised management of JB Ghana to take insurance cover for their goods in transit and

equipment.

Three insurance companies have been invited to submit their bid to insure the goods and equipment

of the company. SIC, Donewell Insurance and Enterprise Insurance submitted their bid.

Management of the company decided to insure with Donewell for the first year as trial period. It was

a policy of the insurance cover that premium will be paid on quarterly installment which the first quarter

premium waived. The waiver for the first quarter in relation to the premium incentivized the company

to go with Donewell.

On 12 May 2019, the company dispatched goods from its warehouse in Tema to a retailer in Tamale.

The driver of the vehicle through no fault of his collided with an oncoming vehicle which caused the

goods on board to be destroyed.

Donewell Insurance has been served with the notice of the claim and it is seeking to avoid liability.

Advise the parties about the validity of the insurance contract.