Jordan Insurance lawsuit demands over £400,000 from AIG on a reinsurance policy, following a £7m Damascus bank robbery
AIG Europe is in a High Court dispute with Jordan Insurance Company after refusing to pay out over £416,000 to indemnify a Syrian bank.
Court papers show AIG Europe signed a reinsurance contract with Jordan Insurance to cover part of the loss suffered by IBTF. But the insurer is arguing US law prohibits it from making the payment.
Defence documents state US sanctions against Syria mean any United States person, “including by a foreign branch of an entity located in the United States” is forbidden to sell or supply any service to Syria.
The defence States: “The payment of funds in respect of the claimant’s claim would constitute the direct or indirect supply of services from the United States or by United States persons to Syria or the receipt in Syria of the benefit of such services performed in the United States or by United States persons.”
Details in Jordan Insurance’s initial claim shows in January 2013 an employee of the Damascus branch of IBTF stole over £7m in US dollars, Euros and Syrian pounds.
Jordan Insurance covered the bank at this time for bankers blanket bond, electronic and computer crime and professional indemnity insurance. Following an initial claim of £7.2m, it negotiated down and settled the claim at £4.4m in March 2016.
Prior to the robbery, broker RFIB placed reinsurance in London, with Greece-based broker Fenchurch Faris handling other reinsurance contracts.
AIG Europe were one firm to enter into a reinsurance contract.
Jordan Insurance is going through the High Court of London seeking payment from AIG Europe, along with additional interest on this sum.
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