Insurance brokerage company files judicial protest against Citadel Insurance Plc

In a judicial protest filed this morning against Citadel Insurance Plc, a brokerage company has hit out at what it described as "abusive" and "illegal" behaviour by the insurers over handling of clients.

Allcare Insurance Brokers Limited said that they were holding Citadel Insurance Plc liable for damages as it allegedly was in breach of  constant practice in the insurance market, that where an insured  party appoints an insurance broker, the selected insurance company must communicate with the broker and not bypass the broker and contact clients directly.

On October 8, 2012, Citadel Insurance Plc wrote to clients who took out insurance policies issued with it through Allcare Insurance Brokers, encouraging them to make direct contact with them in a bid to eliminate the brokers and their role as intermediary between the insured and the company.

Allcare Insurance Brokers Ltd alleged that Citadel Insurance Plc was directly approaching some clients for which it is acting as their broker in order for the clients to insure their risks directly with the company.

It was also noted that Citadel Insurance Plc allegedly gave instructions to its surveyors not communicate with Allcare Insurance Brokers, but to go straight to the insured parties.

Allcare Insurance Brokers accused Citadel Insurance Plc of acting in bad faith in an attempt to lead them into a situation where they cannot fulfill their obligations towards their clients, "and instead try to create a direct relationship with the insured causing serious prejudice to Allcare Brokers."

Allcare are holding Citadel Insurance Brokers responsible at law for the damages it is sustaining and also claimed "serious harm to the local insurance market to the detriment of the insured, who can be prejudiced without the assistance of their insurance broker, especially in the handling of claims."