Question
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
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
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