LSK Challenges New Insurance Law In Court

LSK Secretary and CEO Apollo Mboya says that the new law denies accident victims the rights to choose between the scheme and litigation and also undervalues certain degrees of disablement.

Mboya said that the change in law is unconstitutional and that the LSK had instructed their lawyer Fred Ngatia to challenge it in court

“The scheme is designed in such a manner as to deny victims legal representation as a matter of right,” Mboya said.

The Insurance (Motor Vehicle, Third Party Risks), Amendment Bill, 2013 amended the Insurance (Motor Vehicle Third Party Risks), Act Cap 405 and thereby introduced a Schedule of structured payment of compensation under the Act similar to the Work Injury Benefits Act providing a maximum compensation in respect of death or fixed compensation for each body part based on individual income levels, nature and extent of injury sustained among others.

The Finance Minister in 2009, through a Gazette Notice introduced Section 5(b) to the Insurance (Motor Vehicle Third Party Risks), Act capping damages to Sh3 million in respect to passengers in any motor vehicle whether Private, PSV or Commercial.

Mboya said that courts today are still awarding more than Sh3 million as damages since majority of clients were exposed to execution for over and above the amount.

“Insurance companies increased premiums for anyone who proposes cover in excess of the Sh3 million for passengers injured or death caused by the insured motor vehicle,” Mboya said.

By Beth Nyaga