Law Society of Kenya up in arms about new insurance law


Nairobi, Kenya: The Law Society of Kenya (LSK) is set for a bruising court battle with the Government over the enactment of a new insurance law, which the society terms unconstitutional.

LSK Chief Executive Officer Apolo Mboya

The society plans to challenge The Insurance (Motor Vehicle, Third Party Risks, Amendment) Act, 2013, which was signed into law by the President on December 24, last year.

LSK is against the new insurance law that caps damages at Sh3 million in respect to passengers in motor vehicle accidents.

According to LSK, the new law which was passed despite the organisation’s petitions to the President and Parliament, would deny accident victims the right to choose between the scheme and litigation and also undervalue certain degrees of disablement.

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

He explained that the amended law will not serve the best interests of the public and would continuously require review of compensation amounts, taking into account inflationary factors.

He said courts were still awarding more than Sh3 million as damages since majority of insured clients were exposed to execution for over and above that 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,” Mr Mboya said.

The new law 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 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 new Act capping damages at Sh3 million in respect to passengers in any motor vehicle whether Private, PSV or Commercial.n resettled in Phase Two.

Monday, the raiders also disrupted a meeting convened by the local chief to ease growing tension over the land dispute.


The administrator was addressing the meeting when the raiders, armed with bows and arrows, emerged from the bush and descended on the villagers.

One woman identified as Salome Nyambura was shot on the head with an arrow. She was rushed to Anderson Health Centre for first aid and later transferred to Kitale District Hospital.

Kwanza OCPD Wilfred Mong’are confirmed the attack and said his officers were enroute to assess the security situation.

“It is true there is violence at Kaboto village within Chepchoina Settlement Scheme and the sub-county security team is headed to the ground to intervene,” Mong’are told The Standard on phone.

And Faith Wekesa and her one-and-a-half-year-old son are fighting for their lives at Anderson Health Centre from the serious burns and cuts they sustained after the raiders set their house on fire.

Trans Nzoia Woman Representative Janet Nangabo visited the woman and her baby in hospital and condemned the attack.

Mrs Nangabo described the security situation at the scheme as wanting and urged the Government to intervene.

“Innocent families are being driven out of their homes and we want this stopped to enable residents to prepare their farms,” said Nangabo.

Deputy County Commissioner Gabriel Risie and Monga’re led a heavy security team to the area to quell the tension.

By Isaiah Lucheli, The Standard

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