Online Reporter
Fidelis Munyoro
Chief Court Reporter
Alliance Insurance Company is in the fight of its life, scrambling to block a US$11,7 million arbitration award that the company claims could shake the foundations of the country’s insurance industry.
The insurer argues that the payout is “contrary to public policy,” a last-ditch effort to escape a seemingly onerous insurance claim following a devastating fire at Paramount Exports (Private) Limited.
The garment manufacturer, whose stock was reduced to ashes in a 2023 blaze at its Harare premises, had taken an all-risk insurance policy from Alliance.
But the insurer has balked at Paramount’s US$11,7 million claim, offering a drastically lower figure of US$4 million.
The liability dispute spiralled into arbitration, culminating in a December 10, 2025, ruling by arbitrator Mr Innocent Chagonda that found Paramount’s valuation more credible.
Mr Chagonda was awarded Paramount US$11,682 million, adjusted for shrinkage and obsolescence, and added a 5 percent annual interest dating back to December 4, 2023—the day of the fire outbreak.
Alliance, however, is far from conceding.
In its application to block the registration of the award with the High Court, the insurer claims the judgment could destroy not only its business but also the broader insurance sector in Zimbabwe.
“This amount has a huge impact not only on the respondent but on the entire insurance industry,” Alliance argued in court papers.
“The award is unsustainable and has the effect of destroying the respondent, which is contrary to public policy.”
Alliance contends that the award, about US$11,7 million, is more than seven times its statutory reserve requirement of US$1,5 million.
It further alleges that Paramount’s claim lacked the necessary documentation, such as stock-account sheets or audit reports, to support the valuation of goods lost in the fire.
“We are being forced to pay an amount that was not substantiated with any proper evidence,” Alliance stated, warning of dire consequences if the award stands.
Paramount, however, has remained steadfast.
The garment maker, a critical supplier of clothing to regional and international markets, insists the delay in receiving its due compensation is hindering its ability to recover and rebuild.
