A Takoradi-based jewellery company, ELOK & Sons Ltd., has filed a lawsuit against Donewell Insurance Limited, accusing the insurer of breaching an insurance contract by allegedly failing to honour a claim following an alleged theft of jewellery stock valued at about US$3 million.

The suit, filed at the Sekondi High Court, seeks damages for what the company describes as a breach of contract arising from a fire and burglary insurance policy it purchased from Donewell Insurance in 2025.

According to the statement of claim, ELOK & Sons said it took out a fire and burglary insurance policy with Donewell Insurance in August 2025 to cover its jewellery stock.

The company alleged that before the policy was issued, officials of the insurance company inspected its jewellery shop and assessed its stock.

The insurer subsequently valued the stock at US$3 million based on prevailing world market prices and charged a premium of US$4,266, which the plaintiff said it paid in full in US dollars at the insistence of the insurer.

The plaintiff said it was thereafter issued with Policy No. DIL/CC/FBC/06250007, described as a Combined Fire and Burglary policy.

Burglary incident

Court documents state that on September 1, 2025, the jewellery shop was burgled and stock belonging to the company was stolen.

ELOK & Sons contends that it immediately notified Donewell Insurance of the incident by email. However, it alleges that the insurer took no substantive action for more than a week.

According to the company, an investigator identified only as Hammond visited its premises on September 13, 2025, to ask questions, take photographs and conduct preliminary inquiries on behalf of the insurer.

The plaintiff further stated that it had already reported the matter to the police and later obtained a police investigation report, which it submitted to Donewell Insurance on September 26, 2025.

The company claims that after submitting the report, it again received no communication from the insurer until October 14, 2025, when the same investigator reportedly returned to ask additional questions.

Alleged delays

ELOK & Sons alleges that prolonged delays in the handling of its claim forced its manager to visit the insurer's Takoradi office to complain about what it described as the company's "lethargic approach" to the matter.

The plaintiff said it was only after this complaint that Donewell Insurance provided it with a claims form to complete.

According to the suit, the insurer subsequently wrote to the company on November 5, 2025, requesting various documents and information before processing the claim.

The jewellery company argues that the requests were unreasonable and inconsistent with the terms of the insurance agreement, particularly because the insurer had already inspected and valued the stock before issuing the policy and collecting the premium.

The plaintiff said it nevertheless provided all relevant documents and cooperated with further investigations conducted by officials of the insurance company.

Alleged breach of contract

The company claims that after months of correspondence, meetings and exchanges between the parties, it became clear that Donewell Insurance did not intend to honour its obligations under the insurance policy.

ELOK & Sons argues that the insurer's failure to settle the claim constitutes a breach of contract that has caused substantial financial losses.

In its statement of claim, the company lists the loss of the stolen jewellery stock and the current value of that stock as special damages arising from the alleged breach.

The plaintiff is also seeking general damages, contending that the failure to receive compensation made it impossible to replenish its stock and continue operations at previous levels.

The company further claims that the situation led to a significant loss of revenue and ultimately forced the closure of its branch at the Takoradi Mall.

Relief sought

The writ of summons, issued on June 22, 2026, states that ELOK & Sons is seeking damages for breach of contract and compensation for the losses it says it suffered as a result of the insurer's alleged failure to honour the policy.