Family sues bank over Katatumba death benefits

Wednesday February 27 2019



Plaintiff.  Angella Katatumba

Plaintiff. Angella Katatumba 

By EPHRAIM KASOZI

Kampala. The family of deceased businessman Boney Mwebesa Katatumba has run to court suing Barclays Bank Uganda for alleged breach of contract in failing to pay death benefits worth Shs21 million.

Katatumba, a former Pakistan honourary consul in Uganda and Chief Executive Officer of Katatumba Group of Companies, died in February 2017.

The family’s attorney and Ms Angella Keihongani, Katatumba’s daughter, contend that the deceased held and maintained a premium/prestige bank account during his life where he paid a monthly premium of Shs66,500.

They contend that if the account holder opened the account before the age of 65, he would be entitled to a life insurance cover of Shs21m up to the age of 70 and that the said entitlement goes up to 85 years.
The family say Katatumba maintained his account by paying the premium which was deducted monthly from his account.

“When the deceased passed on, the defendant undertook to pay the family the death benefits, only to back-track thereon, soon after the burial of the deceased. In further breach of contract, the defendant (Barclays Bank) on June 7, 2017 offered to pay the beneficiaries of the estate of the deceased an exgratia payment of Shs10 million,” reads particulars of the suit.

The family is seeking a court order to the bank to pay Shs21m for the death gratuity for Katatumba, interest at 25 per cent, general damages and legal costs incurred by the complainants.

Court has summoned Barclays Bank Uganda to file its defence within 15 days.
“You are hereby required to file a defence in the said suit within 15 days from the date of service of summons on you in the manner prescribed. Should you fail to file a defence on or before the date, judgement may be given in your absence,” reads the court dated February 14.

When contacted, the head of Marketing and Corporate Affairs at Barclays Bank Uganda, Ms Harriet Kasirye, declined to comment on the matter.
“I am not in position to comment on the matter because we have not been served with the complaint,” she said.

Life insurance. The Katatumba family contend that if the account holder opened the account before the age of 65, he would be entitled to a life insurance cover of Shs21m up to the age of 70.

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