Smiles to car Owners As Court Halts 50% Increase of Insurance premiums

The High Court ordered the imminent rise to be suspended until a complaint filed by the Kenya Human Rights Commission (KHRC) is heard and decided, according to a judgment issued on Wednesday, January 12. The insurance firms were prevented from enacting the 50% increase as well as the decision to exclude specific types of automobiles from comprehensive coverage under the verdict.

"The High Court has suspended the increase in insurance premiums and the decision by insurance companies to exclude certain categories of motor vehicles from their comprehensive cover pending hearing and determination of the case," celebrated KHRC, the petitioner.

The court further ordered that the case be heard on April 14, 2022, and that all respondents serve their responses to the petition within 21 days.

In its lawsuit, the human rights advocacy group claimed that the Insurance Regulatory Authority (IRA) had illegally sanctioned the premium hike.

                              Undated photo of Nairobi residences in Nairobi`s busy streets. PHOTO FILE

“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.