Why should you be wary of local Motor Policies?

The Story:

A recent court award for the death of a member of the public in a motor accident in 2016 has resulted in us bringing this matter to the attention of our clients and anyone who may have purchased a local Motor insurance policy.

The incident occurred in 2016 and a sum of KES 6m has just been awarded in compensation. The majority of local motor policies, however, have a limit of KES 3m, so this particular policyholder now has to fund the balance of KES 3m, plus legal fees.

The facts:

The general public and our friends in the insurance industry will cite the Kenya law that there is a maximum compensation payable for third party claims of KES 3m, but they are mistaken, there is no limit.

Under Section 5 b (iv) of the Act, it states:-

Why should you be wary of local Motor Policies

In effect, the law states that to comply the insurance policy does not have to have a liability limit that exceeds KES 3m, but it DOES NOT restrict the award of compensation over and above that amount. As such, a serious incident could leave you exposed, both as a business or private individual.

With increasing legal costs and court awards, we feel it is essential to ensure you have adequate limits under your motor insurance policy.

 How can JW Seagon help you?

Under the JWS Motor policies, we have limits ranging from KES 50m to Unlimited for any one person, and our rates are compliant with the new minimum rates, so it is worth considering when renewing your policy next time.

To find out more get in touch with one of our team, email pink@jwseagon.com or call us on +254 (0) 709 455026.