Allied Insurance ordered to pay MVR 351 million to Yacht Tours

The Civil Court, on Sunday, ordered Allied Insurance to pay USD 22.78 million (MVR 351 million) to Yacht Tours.

The lawsuit was filed by Yacht Tours over lack of compensation for extensive damages to water villas in H. A. Alidhoo – a resort leased to Yacht Tours for development as a tourist resort - due to bad weather, in 2014.

The Civil Court found that Yacht Tours has the right to make an insurance claim to cover the damages under the fire insurance policy taken for the resort from Allied Insurance, and should be compensated for the damages.

The court ordered Allied Insurance to pay the USD 22,784,837.59 demanded by Yacht Tours as compensation for the damages.

The ruling was issued by Judge Ali Naseer, who ordered that the compensation be settled over the next six months.

A previous lawsuit filed by Yacht Tours over the case was rejected by the Civil Court. However, the company appealed the decision at the High Court, which ordered the Civil Court to accept the lawsuit. The High Court’s decision, in turn, was appealed by Allied Insurance at the Supreme Court, which ruled in support of the High Court decision.

Yacht Tours is owned by Dhivehi Rayyithunge Party (DRP) leader and Kaashidhoo lawmaker Abdulla Jabir.