The Kenyan High Court on Wednesday suspended the planned increment of premiums for motor vehicle insurance by up to 50 per cent.
The increase was to affect Motor Vehicle Third Party Cover and the Comprehensive Cover starting the year 2022.
Justice James Makau in his directive said the petition filed by Kenya Human Rights Commission (KHRC) is heard and determined.
“I have considered the petitioners’ grounds in support of the application and oral submissions by both parties upon careful evaluation of the same, I find that the petitioner has demonstrated a prima facie case with a likelihood of success,” the Judge said.
The matter will be mentioned on 14th April 2022. The Insurance Regulatory Authority (IRA) and the Association of Kenya Insurers (AKI) have been ordered to file their responses within three weeks.
The Consumers Federation of Kenya (Cofek) has been enjoined in the matter.
BREAKING: The high court has suspended the increase in insurance premiums & the decision by insurance companies to exclude certain categories motor-vehicles from their Comprehensive Cover pending hearing & determination of the case.
— KHRC (@thekhrc) January 12, 2022
In the petition, KHRC accuses the Insurance Regulatory Authority (IRA) of illegally sanctioning for the increase in the premiums.
“Considering the mandatory nature of motor vehicle insurance, then the said service has to be offered in a manner that protects consumers’ health, safety and economic interests.
“To unjustifiably increase premiums without consultations and justification violates the rights of consumers. To further exclude a specific category of vehicles from comprehensive insurance cover without justification equally violates the rights of consumers,” read the court papers filed by KHRC.
