Case against third party insurance ‘urgent’

April 3, 2014
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High Court Judge Justice David Majanja received a petition filed by Lawyer Fred Ngatia on behalf of the Law Society of Kenya (LSK)/FILE
High Court Judge Justice David Majanja received a petition filed by Lawyer Fred Ngatia on behalf of the Law Society of Kenya (LSK)/FILE
NAIROBI Kenya, Apr 3 – The High Court has certified a case challenging the authenticity of the Insurance Amendment Act, 2013 (Motor Vehicle Third Party Risks) as urgent.

The new insurance law caps damages payable to passengers in motor vehicle accidents at Sh3 million.

High Court Judge Justice David Majanja received a petition filed by Lawyer Fred Ngatia on behalf of the Law Society of Kenya (LSK).

He ordered that LSK serves the Attorney General immediately awaiting further directions at 9am on Friday.

Law Society of Kenya Chief Executive Officer Apollo Mboya argues that the law will not serve the best interest of the public saying it should be reviewed while taking into account the inflation factors.

“We filed the pleadings under certificate of urgency due to the obvious fact that there is need for the petition to be certified urgent,” he stated.

The law amended the Insurance (Motor Vehicle Third Party Risks), Act Cap 405 and introduced a Schedule of a 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.

This is based on individual income levels, nature and extent of injury sustained among others.

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

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