The High Court of Uganda has overturned a lower court ruling and declared that the National Insurance Corporation (NIC) lawfully rejected a Shs45.8 million fuel spill claim lodged by Rock Global Oils (U) Ltd.
In a judgment delivered on February 23, 2026, Justice Stephen Mubiru allowed NIC’s appeal and set aside a 2019 decision of the Mengo Chief Magistrate’s Court that had ordered the insurer to compensate the fuel dealer.
The case arose from a February 12, 2015 road accident involving Rock Global Oils’ fuel tanker along the Lira–Kamdini Road. The truck had left Eldoret, Kenya, carrying 29,997 litres of diesel destined for Gulu.
The company claimed that 18,000 litres were lost in the accident and sought Shs45,828,000 under a goods-in-transit policy issued by NIC covering March 7, 2014 to March 6, 2015.
After NIC declined liability, Rock Global Oils sued, seeking special damages of Shs45.8 million, general damages of Shs2 million for breach of contract, interest and costs.
In September 2019, the trial magistrate ruled in favour of the company, holding that although several documents had been provided to prove the loss, the insurance policy did not expressly require submission of a weighbridge report.
NIC challenged that decision, arguing that the policy required the insured to provide “such proofs, information and sworn declarations as the Company may require.”
The insurer said it requested a weighbridge report on July 27, 2015 to verify the quantity of fuel loaded before the accident.
Rock Global Oils declined, maintaining that the document was not a contractual requirement.
NIC argued that without the report, it could not accurately determine the volume of fuel lost. Its loss adjuster estimated that between 50 and 200 litres may have spilled — far below the 18,000 litres claimed.
Justice Mubiru said the central issue was whether the company breached its duty of cooperation and honesty during the claims process.
He reaffirmed that insurance contracts are governed by the principle of uberrimae fidei — utmost good faith — which requires full and truthful disclosure not only at the formation of the contract but also when a claim is made.
“When a request for relevant information is made, the insured must provide truthful, full and accurate information,” the judge held, adding that knowingly withholding material information constitutes a breach of that duty.
The court found that the weighbridge report was materially relevant because it would have established the precise quantity of fuel loaded onto the tanker. The judge also noted inconsistencies in the company’s explanation for failing to provide it.
Justice Mubiru ruled that Clause 6.1.4 of the policy, requiring the insured to furnish documents the insurer may reasonably request, operated as a condition precedent to liability. Failure to comply, he said, entitled the insurer to repudiate the claim.
He further observed that special damages must be strictly proved, and without the weighbridge report there was no precise proof of the 18,000 litres allegedly lost.
The High Court allowed the appeal, set aside the lower court award of Shs45.8 million and Shs2 million in general damages, and dismissed the suit.
The ruling underscores the legal obligation on insured parties to fully cooperate with insurers and provide material documentation necessary to verify claims.
