Aqua Plumbing (U) Ltd v United Assurance Co Ltd (Civil Suit No. 431 of 2002) [2004] UGCommC 7 (14 March 2004)

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.}}{\*\pnseclvl2\pnucltr\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl3\pndec\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl4\pnlcltr\pnstart1\pnindent720\pnhang {\pntxta )}} {\*\pnseclvl5\pndec\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl6\pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl7\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl8 \pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl9\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain \s15\qc \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1 \widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid13649308 \fs24\lang2057\langfe2057\cgrid\langnp2057\langfenp2057 {\b\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 THE REPUBLIC OF UGANDA \line IN THE HIGH COURT OF UGANDA AT KAMPALA \line (COMMERCIAL DIVISION) \line CIVIL SUIT }{\b\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid8407464 NO}{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 . }{ \b\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 431 OF 2002 \line AQUA PLUMBING (U) LTD}{\b\lang1033\langfe2057\langnp1033\insrsid8407464 \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85}{ \b\lang1033\langfe2057\langnp1033\insrsid8407464\charrsid13649308 .}{\b\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 PLAINTIFF \line VERSUS \line UNITED ASSURANCE CO. LTD}{\b\lang1033\langfe2057\langnp1033\insrsid8407464 \'85\'85\'85\'85 \'85\'85\'85\'85\'85\'85\'85\'85\'85}{\b\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 DEFENDANT }{\b\lang1033\langfe2057\langnp1033\insrsid8407464 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid8407464 {\b\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 Before: The Hon. Mr. Justice F. S. Lugayizi \line }{\b\lang1033\langfe2057\langnp1033\insrsid8407464 \par }\pard \s15\qc \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid8407464 {\b\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 JUDGMENT \line }{ \b\lang1033\langfe2057\langnp1033\insrsid8407464 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid8407464 {\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 The plain tiff sued the defendant for breach of insurance contract relating to motor-vehicle registration No. UAA 779Q that go}{\lang1033\langfe2057\langnp1033\insrsid8407464 t }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 an accident on 10}{ \lang1033\langfe2057\super\langnp1033\insrsid9532224\charrsid8407464 th}{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 November 2001 and prayed Court for the following remedies: \line }{\lang1033\langfe2057\langnp1033\insrsid8407464

\par }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 1. A sum of shillings 9,800,000/ as compensation for loss. \line 2. General damages. \line 3. Interest on 1 and 2 above at the rate of 24% p.a. \line 4. Costs of the suit. \line }{ \lang1033\langfe2057\langnp1033\insrsid9532224\charrsid8407464 5}{\i\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 . }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 Any other further or alternative remedy Court may deem fit to grant. \line }{\lang1033\langfe2057\langnp1033\insrsid8407464 \par }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 In its WSD the defendant denied the plaintiff\rquote s claim and averred that it did not bre ach any contract because at the time of the accident there was no insurance policy in place to cover the accident. The defendant, therefore, prayed Court to dismiss the plaintiff\rquote s suit. \line }{\lang1033\langfe2057\langnp1033\insrsid8407464

\par }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 At the time of the scheduling conference and at the hearing of the s}{\lang1033\langfe2057\langnp1033\insrsid8407464 uit Messrs. }{ \lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 Mugisha and Tumusingizi, respectively, represented the plaintiff and the defendant. \line }{\lang1033\langfe2057\langnp1033\insrsid8407464 \par }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 The agreed facts constituted the following: \line }{\lang1033\langfe2057\langnp1033\insrsid8407464 \par }\pard \s15\ql \fi-720\li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid8407464 {\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 1. }{ \lang1033\langfe2057\langnp1033\insrsid8407464 \tab An insurance policy No. 0}{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 10/080/1/000098/2000 existed between the plaintiff and the defendant in respect of a pick-up motor vehicle}{ \lang1033\langfe2057\langnp1033\insrsid8407464 }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 registration No. UAA 779Q for the period running from 14}{\lang1033\langfe2057\super\langnp1033\insrsid9532224\charrsid8407464 th}{ \lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 March 2000 to 13}{\lang1033\langfe2057\super\langnp1033\insrsid9532224\charrsid8407464 th}{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 March 2001. \line }{ \lang1033\langfe2057\langnp1033\insrsid8407464 \par }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 2. }{\lang1033\langfe2057\langnp1033\insrsid8407464 \tab }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 On the expiry of the above policy the defendant requested, in writing, the }{\lang1033\langfe2057\langnp1033\insrsid8407464 plaintiff to renew the policy. \par 3.\tab On 10}{\lang1033\langfe2057\super\langnp1033\insrsid8407464\charrsid8407464 th}{\lang1033\langfe2057\langnp1033\insrsid8407464 }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 November 2001 the above mo tor vehicle had a serious accident and was subsequently written off. \line }{\lang1033\langfe2057\langnp1033\insrsid8407464 \par }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 4. }{\lang1033\langfe2057\langnp1033\insrsid8407464 \tab }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 The plaintiff lodged a claim for compensation, but the defendant rejected it on the basis that the plaintiff had not paid any premium to cover the period of the accident. \line }{\lang1033\langfe2057\langnp1033\insrsid8407464 \par }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid8407464 5.}{\i\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 }{\i\lang1033\langfe2057\langnp1033\insrsid8407464 \tab }{ \lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 On 9}{\lang1033\langfe2057\super\langnp1033\insrsid9532224\charrsid8407464 th}{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 M ay 2002 the plaintiff paid the defendant some money that was receipted. \line }{\lang1033\langfe2057\langnp1033\insrsid8407464 \par }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 6. }{\lang1033\langfe2057\langnp1033\insrsid8407464 \tab }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 At the time the plaintiff made the said payment the risk initially insured had already taken place. \line }{\lang1033\langfe2057\langnp1033\insrsid8407464 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid8407464 {\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 The following were the agreed docum}{ \lang1033\langfe2057\langnp1033\insrsid8407464 ents, which did not need to be }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 formally proved: \line }{\lang1033\langfe2057\langnp1033\insrsid8407464 \par }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 1. }{\lang1033\langfe2057\langnp1033\insrsid8407464 \tab }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 The motor vehicle logbook- Exh. P1. \line }{ \lang1033\langfe2057\langnp1033\insrsid8407464 \par }\pard \s15\ql \fi-720\li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid8407464 {\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 2. }{ \lang1033\langfe2057\langnp1033\insrsid8407464 \tab }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 Insuranc}{\lang1033\langfe2057\langnp1033\insrsid8407464 e policy document running from 1}{ \lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 4}{\lang1033\langfe2057\super\langnp1033\insrsid8407464\charrsid8407464 th}{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 March 2001 to 13}{ \lang1033\langfe2057\super\langnp1033\insrsid9532224\charrsid8407464 th}{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 March 2002- Exh. P2. \line }{\lang1033\langfe2057\langnp1033\insrsid8407464 \par }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 3. }{\lang1033\langfe2057\langnp1033\insrsid8407464 \tab }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 Motor vehicle inspection report dated 14}{ \lang1033\langfe2057\super\langnp1033\insrsid9532224\charrsid8407464 th}{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 November 2001- Exh P3. \line }{\lang1033\langfe2057\langnp1033\insrsid8407464 \par }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 4. }{\lang1033\langfe2057\langnp1033\insrsid8407464 \tab }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 The plaintiff\rquote s claim dated 12}{ \lang1033\langfe2057\super\langnp1033\insrsid9532224\charrsid8407464 th}{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 November 2001- Exh. P4. \line }{\lang1033\langfe2057\langnp1033\insrsid1408727 \par }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid1408727 5.}{\i\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 }{\i\lang1033\langfe2057\langnp1033\insrsid1408727 \tab }{ \lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 Demand letter dated 20}{\lang1033\langfe2057\super\langnp1033\insrsid9532224\charrsid1408727 th}{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 May 2002- Exh. P5. \line }{ \lang1033\langfe2057\langnp1033\insrsid1408727 \par }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 6. }{\lang1033\langfe2057\langnp1033\insrsid1408727 \tab }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 Defendant\rquote s reply to the above letter dated 10}{ \lang1033\langfe2057\super\langnp1033\insrsid9532224\charrsid1408727 th}{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 June 2002- Exh. P6. \line }{\lang1033\langfe2057\langnp1033\insrsid1408727 \par }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 7. }{\lang1033\langfe2057\langnp1033\insrsid1408727 \tab }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 Motor vehicle Third Party Insurance general certificate dated 16}{ \lang1033\langfe2057\super\langnp1033\insrsid9532224\charrsid1408727 th}{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 March 2001- Exh P7. \line }{\lang1033\langfe2057\langnp1033\insrsid1408727 \par }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 8. }{\lang1033\langfe2057\langnp1033\insrsid1408727 \tab }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 Payment voucher dated 9}{ \lang1033\langfe2057\super\langnp1033\insrsid9532224\charrsid1408727 th}{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 May 2002- Exh. P8. \line }{\lang1033\langfe2057\langnp1033\insrsid1408727 \par }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 9. }{\lang1033\langfe2057\langnp1033\insrsid1408727 \tab }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 Receipt dated 9}{ \lang1033\langfe2057\super\langnp1033\insrsid9532224\charrsid1408727 th}{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 May 2002- Exh. P9. \line }{\lang1033\langfe2057\langnp1033\insrsid1408727 \par 1}{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 0.}{\lang1033\langfe2057\langnp1033\insrsid1408727 \tab }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 Renewal notic}{\lang1033\langfe2057\langnp1033\insrsid1408727 e dated 1}{\lang1033\langfe2057\super\langnp1033\insrsid1408727\charrsid1408727 st}{\lang1033\langfe2057\langnp1033\insrsid1408727 February 2001- D 1. \line }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 \par }\pard \s15\ql \fi-720\li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid1408727 {\lang1033\langfe2057\langnp1033\insrsid1408727 11}{ \lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 .}{\lang1033\langfe2057\langnp1033\insrsid1408727 \tab }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 Motor renewal endorsement for the period running from 9}{ \lang1033\langfe2057\super\langnp1033\insrsid9532224\charrsid1408727 th}{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 May 2002 to 8}{\lang1033\langfe2057\super\langnp1033\insrsid9532224\charrsid1408727 th}{ \lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 May 2003 whose date of issue is 13}{\lang1033\langfe2057\super\langnp1033\insrsid9532224\charrsid1408727 th}{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 March 2002- Exh. D2. \line }{\lang1033\langfe2057\langnp1033\insrsid1408727 \par }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 12.}{\lang1033\langfe2057\langnp1033\insrsid1408727 \tab }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 Debit Note No. 00800337 dated }{ \lang1033\langfe2057\langnp1033\insrsid9532224\charrsid1408727 13}{\lang1033\langfe2057\super\langnp1033\insrsid9532224\charrsid1408727 th}{\b\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 }{ \lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 May 2003- Exh D3. \line }{\lang1033\langfe2057\langnp1033\insrsid1408727 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid1408727 {\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 For the sake of clarity, Court has rephrased one of the two issues the parties agreed upon. Court is satisfied that this will not prejudice the parties. In fact, it is for the good of the parties. The issues now read as follows: \line }{ \lang1033\langfe2057\langnp1033\insrsid1408727 \par }\pard \s15\ql \fi-720\li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid1408727 {\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 1. }{ \lang1033\langfe2057\langnp1033\insrsid1408727 \tab }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 Whether at the time of the accident the }{\lang1033\langfe2057\langnp1033\insrsid1408727 plaintiff\rquote s motor vehicle had }{ \lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 comprehensive motor vehicle insurance policy covering it. \line }{\lang1033\langfe2057\langnp1033\insrsid1408727 \par }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 2. }{\lang1033\langfe2057\langnp1033\insrsid1408727 \tab }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 The remedies available. \line }{ \lang1033\langfe2057\langnp1033\insrsid1408727 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid1408727 {\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 During the hearing of the suit the plaintiff called one witness, namely Fred Muyende (PW1). The plaintiff\rquote s case was }{\lang1033\langfe2057\langnp1033\insrsid1408727\charrsid13649308 briefly}{ \lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 as follows: \line }{\lang1033\langfe2057\langnp1033\insrsid1408727 \par }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 In the early part of 2000 the plaintiff took from the defendant a comprehensive insurance policy to cover a commercial motor vehicle registration Number UAA 779Q. The life span of the policy was one year. It ran from }{ \lang1033\langfe2057\langnp1033\insrsid9532224\charrsid1408727 14}{\lang1033\langfe2057\super\langnp1033\insrsid9532224\charrsid1408727 th}{\b\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 }{ \lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 March 2000 to 13}{\lang1033\langfe2057\super\langnp1033\insrsid9532224\charrsid1408727 th}{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 March 2001. The plaintiff paid a sum of shillings }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid1408727 658,000/}{\lang1033\langfe2057\langnp1033\insrsid1408727 =}{\i\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 }{ \lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 as premium for the policy. On }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid1408727 13}{\lang1033\langfe2057\super\langnp1033\insrsid9532224\charrsid1408727 th}{ \b\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 March 2001 when the policy expired the defendant sent the plaintiff a renewal notice. The plaintiff responded; and in the negotiations that ensued an officer of the defendant called Musoke sent the plaintiff a Third Party Insurance receipt (Exh. P7). The receipt showed, among other things, that the said policy could be used to cover the motor vehicle in question compreh ensively because it cited the plaintiff\rquote s initial comprehensive insurance policy number and showed, too, that the same old premium was payable. However, the plaintiff did not pay the premium for the renewal of the policy for its motor vehicle until 9th May 2002. In the mean time, the motor vehicle in question had a serious accident in Masaka; and it was written off. The plaintiff, therefore, referred the matter to the defendant with a view to recovering the pre-accident value of the said motor vehicle. The plaintiff was surprised when the defendant refused to compensate it in respect of the loss of the motor vehicle. For that reason, the plaintiff prayed Court to give it the remedies earlier on referred to in this judgment. Th}{ \lang1033\langfe2057\langnp1033\insrsid1408727 at was the plaintiff\rquote s case. \line }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid13649308 {\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 In its defence the defendant called two witnesses, namely Ismail Bakowa (DW1) and Ronald Semanda (DW2). Basically, the defendant\rquote s witnesses agreed with the plaintiff\rquote s version referred to above. However, they insisted that the plaintiff could not recover any money from the defendant in respect of the comprehensive insurance policy because at the time of the accident the plaintiff had no such cover from the defendant. That insurance policy had, long before, expired and the plaintiff had not renewed it. The refore, the defendant\rquote s witnesses called upon Court to dismiss the plaintiff\rquote s suit with costs. \line }{\lang1033\langfe2057\langnp1033\insrsid4144248 \par }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 Be that as it may, it is now Court\rquote s duty to resolve the above two issues in the light of the evidence on record and the law. Court will do so below in the orde r in which the issues occur. \line }{\lang1033\langfe2057\langnp1033\insrsid4144248 \par }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 With regard to the first issue (i.e. }{\b\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 whether at the time of the accident the plaintiff\rquote s motor vehicle had a comprehensive motor vehicle insurance policy covering it) }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 Court has this to say. In resolving this issue it will help to understand the difference between a comprehensive motor insurance policy and a Third Party motor insurance policy. }{\b\i\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 \'93A comprehensive motor vehicle insurance policy\'94 }{ \lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 as the name suggests is a motor vehicle insurance policy that covers the insured in resp ect of a wide range of risks his/her motor vehicle may face as it plies the roads. For example, the motor vehicle in question may be damaged on the road. It may cause damage to other motor vehicles or property as it runs on the road. It may cause death or personal injuries to individuals, etc. A comprehensive motor insurance policy covers the insured against all such risks; and the insurer is under obligation to indemnify the insured when they occur. On the other hand, \lquote a }{ \b\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 Third Party motor vehicle insurance policy\'94 }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 (here in Uganda) covers the insured only in respect of death or personal injury occasioned to a third party as a result of an accident which the motor vehicle of the insured causes. It does not cover the insured in respect of damage to his/her mot or vehicle sustained on the road or, damage his/her motor vehicle may cause to any other motor vehicle or property. }{\b\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 (See section 3(b) of The Motor Vehicle Insurance (Third Party }{ \lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 Risks) }{\b\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 Act (Cap. 214). It }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 is worth noting that although the above two motor insurance policies are different, generally when one takes out a comprehensive motor insurance policy it means that one\rquote s insurance cover includes a Third Party motor vehicle insurance policy. Under section 2(1) of the }{\b\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 Motor Vehicle Insurance (Third Party }{ \lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 Risks) }{\b\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 Act }{\b\i\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 (Cap. }{ \b\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 214), }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 all motor vehicle owners are under a legal obligation to take out a Third Party motor vehicle insurance policy if they are to use their motor vehicles lawfully on the roads. However, those motor vehicle owners are under no legal obligation to ta}{ \lang1033\langfe2057\langnp1033\insrsid4144248 ke out a comprehensive motor }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 insurance policy in respect of their motor vehicles. The effect of this, therefore, is that many motor vehicle owners }{\lang1033\langfe2057\langnp1033\insrsid4144248\charrsid13649308 fulfill}{ \lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 their legal obligation by taking out a Third Party motor vehicle insurance policy in res pect of their motor vehicles, but they deliberately avoid obtaining comprehensive cover for their motor vehicles because it is expensive to do so. \line }{\lang1033\langfe2057\langnp1033\insrsid4144248 \par }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 Be that as it may, where the insurer and the insured have agreed that the insurer would cover a given risk f or a specific period, there exists a contract of insurance between the two parties for the period agreed upon. When the agreed period of cover expires and the contract insurance is not renewed it is obvious that the validity of such contract ceases. (}{ \b\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid4144248 See}{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 }{\b\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 Brown v Graham (1963) SR }{ \b\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid4144248 (NSW) 365).}{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 However, where the contract is renewed, the renewal becomes a fresh contract of insurance. }{ \b\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 (See Hanley v Pacific Fire & Marine Insurance Company (1893) 14 LR }{\b\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid4144248 (NSW) 224;}{ \lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 }{\b\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 Re Kerr (1943) SASR 8; and Stockell v Heywood (1897}{\b\lang1033\langfe2057\langnp1033\insrsid4144248 ) }{ \b\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 1. Ch. }{\b\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid4144248 459).}{\b\i\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 }{ \lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 The new contract begins from the day of renewal and runs until the agreed day of expiry. It follows, therefore, that the risk occurring in the interim period, that is to say between the expiry of the policy and the renewal thereof is not co vered. To purport to say that such risk was covered under the renewed policy would, in Court\rquote s opinion, go against the basic principle of insurance, which is to cover an uncertain future risk and not a past event. \line }{ \lang1033\langfe2057\langnp1033\insrsid4144248 \par }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 In the instant case, Exh. P2 clearly show s that the plaintiff took out a comprehensive motor insurance policy in respect of its motor vehicle UAA 779Q in March 2000. That policy, among other things, covered damage to that motor vehicle. The policy was for one year. It ran from }{ \lang1033\langfe2057\langnp1033\insrsid9532224\charrsid4144248 14}{\lang1033\langfe2057\super\langnp1033\insrsid9532224\charrsid4144248 th}{\b\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 }{ \lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 March 2000 to 13t1 March 2001. In his testimony Mr. Fred Muyende (PW 1) confirmed that when the above policy expired the plain}{\lang1033\langfe2057\langnp1033\insrsid4144248 tiff did not renew it until 8}{\lang1033\langfe2057\super\langnp1033\insrsid4144248\charrsid4144248 th}{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 March 2002 but in the meantime, that is to say, on \line November 2001, the said motor vehicle got an accident. From the above evidence, which is consistent with the defendant\rquote s v}{\lang1033\langfe2057\langnp1033\insrsid4144248 ersion, it is obvious that on 10}{ \lang1033\langfe2057\super\langnp1033\insrsid4144248\charrsid4144248 th}{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 November 2001 when the accident in question happened the }{ \lang1033\langfe2057\langnp1033\insrsid4144248\charrsid13649308 plaintiff\rquote s}{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 motor vehicle had no comprehensive insurance policy covering it. For that reason the plain tiff cannot lawfully make a claim based on a policy that was not in existence at the time of the accident. \line }{\lang1033\langfe2057\langnp1033\insrsid4144248 \par }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 In reaching the above conclusion Court has also considered Exh. P7. It thinks Exh. P7 is a red herring or a diversionary piece of evidence, for that document is not a renewal of the }{ \lang1033\langfe2057\langnp1033\insrsid4144248\charrsid13649308 plaintiff\rquote s}{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 comprehensive insurance policy in respect of the motor vehicle in question. From all its appearances Exh. P7 is a Third Party motor insurance policy with the usual conditions and terms of such policy attached to }{ \lang1033\langfe2057\langnp1033\insrsid4144248 it. In the }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 circumstances, it is misleading for Mr. Mugisha to argue that because Exh. P7 bears the word }{ \b\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 \'93comp\'94, }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 which the witnesses interpreted to mean }{\b\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 \'93comprehensive\'94, }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 that per se changed the essential terms of the document and made it a renewal of th e comprehensive insurance policy for the motor vehicle in question. Besides, that line of argument is not only inconsistent with the evidence on record it also runs counter to the contents of the plaint, which reveal that the plaintiff did not renew the c omprehensive insurance policy in question immediately when it expired on March 2001. \line }{\lang1033\langfe2057\langnp1033\insrsid4989896 \par }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 All in all, Court must conclude that at the time of the accident the plaintiff\rquote s motor vehicle had no comprehensive motor vehicle insurance policy covering it. \line With regar d to the second issue (i.e. the remedies available) Court has this to say. Since Court has resolved the first issue in favour of the defendant it means that the plaintiff has not succeeded in its suit against the defendant. In the circumstances, Court has no choice, but to dismiss the suit with costs; }{\lang1033\langfe2057\langnp1033\insrsid4989896 and it is hereby ordered so. \line \par E. S. Lugayizi\line 15/3/2004 }{\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 \line \par }\pard\plain \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13649308 \fs24\lang2057\langfe2057\cgrid\langnp2057\langfenp2057 {\lang1033\langfe2057\langnp1033\insrsid9532224\charrsid13649308 \par }}