This archive report was first published on 5 January 2022.
January 5, 2022 - In a bid to protect consumers, the Kenya Human Rights Commission (KHRC) has moved to court to challenge a decision by insurance companies to exclude motor-vehicles over 12 years old or worth less than Kshs 600,000 from comprehensive cover.
According to KHRC, the decision by insurance companies to increase premiums for motor-vehicle insurance is discriminatory, unjustified, and illegal. The commission argues that the mandatory motor-vehicle insurance serves to ensure the safety of motor-vehicle owners, third parties, and the public in general.
“Unless the court intervenes and halts the changes, consumers will continue to greatly suffer as their safety and economic interests are compromised,” KHRC says in court documents.
The commission further wants the court to issue a conservatory order suspending the decision by insurance companies to unjustifiably increase premiums for both the motor vehicle third party cover and comprehensive cover beginning this year 2022.
“Policy holders are therefore consumers of insurance services and are entitled to the protection of their health, safety and economic interests,” KHRC stated.
The underwriters allegedly attributed the increase in premiums to a surge of claims, some of which are fraudulent. However, KHRC says this is not a reason to increase the premiums considering that the law provides safeguards which allows insurance companies to repudiate claims that are not genuine.
