Vilnius Regional Court has accepted a joint claim by Maxima Latvija SIA (a subsidiary of Maxima grupe, UAB) and SIA Tineo against ERGO Insurance SE as this company refused to pay insurance benefit, amounting to EUR 5.34 million.

The companies decided to submit the claim to court after said insurance company refused to fulfil its obligations and compensate the losses occurred after tragic event in Riga on November 2013 caused by third parties design and construction mistakes, which lead to destruction of property of Maxima Latvia and Tineo, insured by ERGO Insurance SE.

In framework of prudent and responsible business practice Maxima Latvija SIA and Tineo SIA had insured business risks and both companies met obligations towards ERGO Insurance SE by paying insurance premiums.

Maxima grupe sees litigation as an unavoidable legal dispute of business entities after other solutions could not be found. Maxima Latvia SIA notified ERGO Insurance SE about said insurance event and losses thereof already in 2013 and submitted request to get insurance benefit under Framework Insurance Contract, however so far no insurance benefit was paid by ERGO Insurance SE.

In the documents, provided to the court, Maxima Latvija clearly motivates, why this particular case should be qualified as an insured event.

Framework Insurance Contract was concluded in Lithuania, it covers the property insurance for the benefit of Maxima Latvia SIA and Tineo SIA including insurance in cases of destruction, of damage to or loss of property.

Maxima grupe has also notified ERGO‘s head office in Germany, informing them about ERGO Insurance SE actions refusing to pay the insurance benefits and the claim process in the court.

Maxima grupe is a major employer in the Baltics: total number of employees in Lithuania exceeds 17 thousand, in Latvia – 8 thousand, Estonia – 4 thousand.