The High Court has issued a writ of execution against Alliance Insurance Company following its failure to pay a US$4 million settlement to Paramount Exports related to a fire that destroyed the company warehouse in December 2023.
The order targets Alliance’s property as part of efforts to enforce payment under a court-registered settlement agreement.
The fire consumed a three-storey warehouse spanning 8 000 square meters.
The blaze destroyed stock, equipment and inventory held within the structure. Paramount Exports held insurance policies with Alliance, which admitted liability in January 2024 and confirmed the policy covered the loss.
Alliance initially agreed to reinstate the building, but later decided against reconstruction and offered a cash settlement instead.
Paramount lodged an insurance claim in April 2024 for $11.77 million, representing losses from inventory and equipment. Alliance offered $3 million as a settlement, an amount Paramount rejected, leading to a dispute that triggered arbitration as required under the insurance policy.
During arbitration hearings in 2025, Paramount presented extensive evidence, submitting 1 800 documents to support the valuation of the loss and the cost of rebuilding, which a surveyor estimated at $15 million.
The High Court had earlier ruled that Alliance must reinstate the building within six months. However, Alliance sought to set aside the arbitration award, which ultimately ordered them to pay $4 million plus interest.
Last month, Alliance and Paramount agreed to a settlement agreement in which Alliance would pay the $4 million plus interest and costs.
The agreement was registered by the High Court and required payment within 10 days. Alliance failed to meet this deadline, leading to the issuance of the writ of execution.
In court filings, Alliance cited lack of funds as a reason for non-payment and argued that fulfilling the payment would violate public policy, warning of negative repercussions for the insurance sector.
The company highlighted its role within the sector as a rationale for withholding payment.
Mr Jeremy Youmans, a director at Paramount Exports, expressed strong criticism of Alliance and the insurance industry’s handling of the claim.
He said, “It is a shock. The insurance sector is in trouble. They failed to provide for liabilities. Our policies with Alliance were for $50 million. We paid premiums based on this cover.”
Mr Youmans said their stock had insurance for $14,6 million and paid premiums on this amount.
He queried how it is possible for the industry to refuse paying a claim of $11,7 million. If they cannot pay $4 million, how will they manage the other claims? How will the building be restored?“It is a shambles. It is a disgrace. Policies were written. Underwriters accepted them. Premiums were paid. There is no money in the coffers to pay the claim.”
Mr Youmans further detailed the impact on the business and the wider insurance environment, stating, “The sector plays a role. It allows cover against risk. We paid the cost. Money accumulated for claims is gone.
“It appears to have been squandered. We do not have cover in Zimbabwe. We face risks at our own cost. Premiums were money wasted. Zimbabwe business news
“This is a matter of gravity. How can we claim to be open for business? We entice investors. We cannot ensure protection of assets. Companies take money. They do not have funds to pay claims. Alliance stated this in court papers.”
He added, “We complained to IPEC. We receive no response. I do not understand how they let things get this bad.
“Brokers met IPEC. IPEC told Alliance to honour the award. Alliance ignored the order. They acted with impunity. They do not respect the courts. They do not respect lawyers. They do not respect arbitrators. They do not respect policy holders.”
Mr Youmans described the ongoing operational challenges for Paramount Exports, revealing, “Work has not started on the building. The Business Interruption policy accrues. Interest accrues. Costs rise. Paramount struggles with cash flow. We have 2 000 employees. We planned for 3 000. Developments are on hold. We have not received reimbursement for costs. It is a failure.”
The dispute highlights tensions within the insurance industry over claims settlement and financial solvency.
Paramount’s case underscores the consequences of delayed payments on businesses, employees, and investor confidence. The High Court’s intervention through the writ of execution aims to compel payment, but the underlying challenges within the sector remain unresolved-herald
