Courtroom rejects suspension of 50 % improve in car insurance – Enterprise Every day

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The court rejects the suspension of the 50 percent increase in car insurance

Thursday, January 06, 2022

Anthony Mrima

Judge Anthony Mrima. FILE PHOTO | NMG

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BY SAM KIPLAGAT
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summary

  • The High Court has refused to suspend the planned premium increase for motor insurance by up to 50 percent.
  • Judge Anthony Mrima did not confirm the case filed by the Kenyan Commission on Human Rights (KHRC) as urgent and ordered the parties to appear for eviction next week.
  • KHRC argues that the proposed premium increase is illegal due to a lack of public participation.

The High Court has refused to suspend the planned premium increase for motor insurance by up to 50 percent.

Judge Anthony Mrima instead upheld the Kenyan Human Rights Commission (KHRC) case as urgent and ordered the parties to appear for eviction next week.

KHRC argues that the proposed premium increase is illegal due to a lack of public participation.

The lobby group has also accused the Insurance Regulatory Authority (IRA) of failing to protect the public and policyholders from such an increase.

KHRC's lawyer Kelly Malenya told Justice Mrima that a number of insurance companies have announced a premium increase of up to 50 percent for motor vehicle insurance this January.

He went on to say that some of the underwriters have announced that they will not offer full insurance coverage for vehicles over 12 years old or less than Sh600,000 in value.

He argued that the proposed increase was discriminatory, unjustified and unlawful given the compulsory nature of motor vehicle insurance. "The actions mentioned are also a violation of consumer rights and are punitive, insensitive and oppressive," he said.

The Commission is asking for a declaration that the increase in premiums without public participation is illegal and void. Mr Malenya said that fully comprehensive insurance premiums are usually calculated using a specific formula that is 4 percent of the value of the vehicle.

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