This archive report was first published on 12 January 2022.
On January 12, 2022, the High Court suspended the move by insurance firms to increase motor vehicle cover premiums and their decision to exclude certain categories of motor-vehicles from their comprehensive cover pending hearing and determination of a case.
The suit was filed by the Kenya Human Rights Commission (KHCR) in response to price hikes and adjusted terms by insurance companies. KHCR also sued the Insurance Regulatory Authority (IRA) for allegedly abandoning its duty to protect consumers.
Public notices by several insurance companies announced an increase of up to 50 per cent of premiums for Motor-Vehicle Comprehensive cover starting 2022. Insurance companies also announced that they would not offer comprehensive insurance cover for motor vehicles older than 12 years or with a value of less than Sh600,000.
According to KHCR, the actions by the insurance companies are discriminatory, unjustified, and illegal. They also believe that consumer rights have been violated.
‘A number of insurance companies have also announced that they will not offer a comprehensive insurance cover for motor vehicles which are older than 12 years or with a value of less than Sh600,000,’ KHCR noted in court documents.
‘This is discriminatory since the said vehicles are still in use and without proper insurance; the said vehicles are a risk to the safety of the public and other road users,’ KHCR Executive Director Davis Malombe noted.
