‏‏ Supreme Court suspends 50 percent increase in car insurance - Mobilyardim

Supreme Court suspends 50 percent increase in car insurance


Economy

Supreme Court suspends 50 percent increase in car insurance


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Overview

  • Justice James Makau said in a ruling that the Kenya Human Rights Commission case has a chance of success because of the issues raised in the petition.
  • The judge also issued an injunction suspending a decision by insurance companies not to offer comprehensive insurance coverage for motor vehicles older than 12 years of age or worth less than Sh600,000.

The Supreme Court has suspended the planned increase in motor insurance premiums by up to 50 percent.

Justice James Makau said in a ruling that the Kenya Human Rights Commission case has a chance of success because of the issues raised in the petition.

The judge also issued an injunction suspending a decision by insurance companies not to offer comprehensive insurance coverage for motor vehicles older than 12 years of age or worth less than Sh600,000.

“I have considered the petitioners’ grounds in support of the application and the oral submissions of both parties after a careful evaluation of these. I believe that the petitioner has demonstrated a prima facie case with a chance of success,” said the judge.

The lobby group rushed to court last week, accusing the Insurance Regulatory Authority (IRA) of failing to protect the public and policyholders from such an increase.

KHRC attorney Kelly Malenya told the court that a number of insurance companies have announced increases in motor vehicle premiums to 50 percent from January.

He went on to say that some insurers have announced that they will not provide comprehensive insurance coverage for motor vehicles older than 12 years of age or worth less than Sh600,000.

He argued that given the mandatory nature of motor insurance, the planned increase is discriminatory, unjustified and illegal. “The said actions also violate consumer rights and are punitive, insensitive and oppressive,” he said.

The court ordered the matter to be reported on Feb. 14 and ordered the IRA and the Association of Kenya Insurers (AKI) to submit their responses within three weeks.

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