The Civil Court has ordered Citadel Insurance to pay the Malta Stock Exchange €269,743.77 being the interest at 8% per annum on €233,000 paid by the insurance company in 2007 following the death by drowning of MSE chairman Alfred Camilleri in November 1992.
Mr Camilleri had been travelling on business in Brazil and had been covered by an insurance policy for accidental bodily injury and medical expenses.
Payment of the €233,000 was made in May 2007 after a court case and an appeal, which the MSE both won.
The MSE then requested payment of interest on the sum from 18 May 1992 to May 8, 2007 on the basis that the compensation was not paid on time.
Mr Justice Zammit McKeon explained that this case was based upon delays in payment by the insurance company. The law provided that the damages which were due to a person who had been deprived of the use of his or her money consisted in interest at eight per cent per annum. The court had therefore to establish whether the delay in effecting payment on the part of Citadel Insurance was justified or otherwise.
On its part Citadel Insurance had contested a 1993 court case filed by the MSE and the heirs on the basis that the policy was intended to cover personal injury and medical expenses which MSE employees might sustain in connection with their work. Mr Camilleri had died in a drowning accident and, according to the insurance company, this was not an occurrence which was covered by the policy.
But in its judgment given in 1999 and which was confirmed on appeal in 2007, the court had excluded this interpretation on the part of the insurance company, and had ruled that the insurance policy covered even this eventuality.
The company's delay was unjustified and it had even delayed making the payment until a further four months had passed from the court of appeal judgment in 2007.
Mr Justice Zammit McKeon concluded by finding in favour of the MSE and Mr Camilleri's heirs and ordered Citadel Insurance to pay €269,743.77 being interest at eight per cent per annum on the sum of €233,000 calculated on the basis that the said €233,000 ought to have been paid to plaintiffs in 1992 but was eventually paid on May 8, 2007.
The court further ordered Citadel Insurance to pay interest upon the said sum of €269,743.77 with effect from May 8, 2007 until payment was actually made by the insurance company in terms oftoday 's jdugment.