High Court suspends push to increase car insurance cover
The High Court has suspended the push to increase car insurance premiums by 50 percent.
The court also halted the decision by insurance companies to exclude certain categories of motor vehicles from their Comprehensive Cover pending hearing & determination of the case.
All respondents have been issued 21 days to file and serve their responses to the petition.
The matter is due for mention on 14th April 2022.
High Court had earlier declined to suspend the hike of premiums for car insurance.
The Insurance Regulatory Authority (IRA) faulted the underwriters for failing to protect the public and policyholders from such an increase.
A number of insurance companies had announced an increase of up to 50 percent of premiums this January, for motor-vehicle comprehensive cover.
Insurers who have raised their prices say the business has been loss-making for a while.
ICEA lion sent alerts to customers informing them of the change with their policy for another private motor vehicle customer showing a significant change from Ksh.51,018 which they would have paid at the start of the year to Ksh.74,374 which they are expected to pay from January 1, 2021.
Metropolitan Cannon also sent out a memo to agents and business partners outlining revised rates for policies that they would sell to customers come the new year.
Insurance companies claim they have been making losses with more than Ksh.3.27 billion in losses over the last 20 years through insurance fraud and price undercutting.
Association of Kenya Insurers data shows that the underwriting loss in 2020 jumped from the previous year’s Ksh.1.12 billion.