A Lagos High Court has ruled in favor of IRS Airlines Limited in a long-standing insurance dispute with a consortium of insurance companies.
The court, led by Honourable Justice K. A. Jose, held that the insurers failed to justify their refusal to settle a valid insurance claim relating to one of IRS Airlines’ aircraft, a Fokker 100 with registration number 5N-SIK ¹.
Dispute arose from the insurers’ refusal to honor the claim despite IRS Airlines’ compliance with the insurance policy terms.
The court rejected the insurers’ arguments and dismissed their counterclaim seeking to invalidate the insurance contract.
Additionally, the court awarded post-judgment interest at 6% per annum on the judgment sum until full liquidation of the debt.
“This judgment represents a significant vindication of IRS Airlines’ position that the insurance claim was valid and that the refusal by the insurers to honour their contractual obligations was unjustified,” said Mr. Yemi Dada, Managing Director of IRS Airlines Limited.
He stated further that: “We are pleased that the Court has carefully considered the facts and the law and has affirmed the rights of policyholders under Nigerian insurance law.”
The decision highlights the importance of good faith and contractual accountability in the aviation insurance sector, crucial for supporting safe and sustainable airline operations.
IRS Airlines reiterated its commitment to upholding the highest standards of safety, compliance, and transparency in its aviation operations.
The Nigerian aviation industry has overtime been facing challenges, including high operating costs, inadequate infrastructure, and regulatory issues.
