Judge orders MFA to pay €12,000 to insurance firm

The Malta Football Association was yesterday ordered to pay over €12,000 to an insurance company in respect of insurance premia.

Mr Justice Lino Farrugia Sacco noted that in 2004 Atlas Insurance PCC Limited sued the MFA claiming payment of Lm5,293.69 by way of balances due for insurance premia.

The MFA replied that it had not had dealings with Atlas Insurance as all its insurance cover, for the period indicated in the writ of summons, had been issued by Alliance Malta Limited.

Joseph Mifsud, on behalf of the MFA, told the court that the MFA had entered into an agreement with Franco Azzopardi, on behalf of Alliance Malta Ltd, an insurance broker.

The court noted that an insurance broker acted on behalf of the insured party and assisted the insured party reach an agreement with the insurance company. The insurance broker acted on behalf of the insured and not on behalf of the insurance company.

A contract of insurance was a bilateral deal between the insured and the insurance company. Against payment of a premium by the insured party, the insurance company undertook to indemnify the insured party against losses mentioned in the insurance policy.

In this case, the MFA was claiming that it had no relationship with Atlas Insurance because its relationship with regard to insurance was directly with Alliance Malta Ltd. Mr Justice Farrugia Sacco said he did not agree with the MFA's claim. It resulted that the MFA had opted to enter into a contract of insurance with Atlas Insurance after making use of the brokerage services of Alliance Malta Limited.

It further resulted that the insurance cover in respect of which Atlas Insurance had requested payment of premia had been issued by Atlas Insurance in favour of the MFA.

In conclusion, the court ordered the MFA to pay Atlas Insurance the sum of €12,330.98 representing the sum of Lm5,293.69.