The Excessive Courtroom has denied suspension of the auto insurance premium improve – HapaKenya – HapaKenya

Hard times are ahead for car owners in Kenya, as insurers are increasing their tariffs for comprehensive insurance. The premium rates that apply vary from one insurance provider to the next, with customers looking for the cheapest rates. This is no longer the case, as the insurance industry has apparently agreed to raise insurance premiums by 50%.

The sharp rise in insurance premiums is attributed to the challenging economic environment caused by the COVID-19 pandemic. A majority of insurance companies reported losses and few reported profits, such as Jubilee, CIC Insurance, Britam and UAP Group.

However, the premium adjustment is encountering resistance from drivers who they describe as excessive. In response, the Kenyan Commission on Human Rights (KHRC) called the High Court late last year. However, the High Court declined to suspend the proposed premium increase for motor insurance by up to 50%. Instead, Judge Anthony Mrima upheld the case, filed by the Kenyan Human Rights Commission (KHRC), as urgent and ordered the parties to appear in court for directions next week.

KHRC argued that the proposed premium increase was illegal because there was no public participation. The commission also accused the Insurance Commissioner (IRA) of failing to protect the public and policyholders from such increases. The Commission therefore seeks a declaration that the increase in the premiums without public participation is illegal and void.

General insurance remained the largest contributor to industrial insurance, accounting for 59.3% of total premium, according to the IRA. During the 2-year pandemic period, the number of claims has increased, according to the industry regulator, with insurers receiving over 2.1 million claims in the second quarter of 2021, up 19% from the first quarter of the year.

For motorists, the use of customer-oriented premium assessment will, among other things, be deepened. This means that each customer's risk profile is heavily taken into account when choosing monthly premiums. If it is implemented, the Kenyans will have to dig deeper into their pockets to cover the adjusted premiums.

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