NAIROBI, Kenya, Aug 14 – The High Court has ordered AAR Insurance to settle an outstanding medical bill of Sh2.19 million after finding the insurer unlawfully refused to cover a customer’s post-delivery complications.
The court ruled that the additional hospitalization costs fell within the petitioner’s total inpatient cover limit, and AAR’s refusal to pay was “unconscionable, unreasonable and an act of bad faith insurance practice.”
The dispute arose after the insurer declined to settle costs linked to extended hospital care, arguing they were outside the policy scope. The judge found that the denial breached the petitioner’s rights and was legally unenforceable.
The ruling reinforces the obligation of insurers to honour valid claims within agreed policy limits and could have implications for industry practices around medical cover disputes.
