BY CORRESPONDENT,NAIROBI,6TH JAN,2022-Motor vehicle owners have been dealt a major blow as underwriters move to increase premiums by more than half the price they have been offering.
This is after the High Court declined to suspend the already-planned hike of premiums for car insurance.
The court has rather cemented the case which was filed by Kenya Human Rights Commission (KHRC).
Justice Anthony Mrima stated the case as urgent and directed parties to appear for directions next week.
The Insurance Regulatory Authority (IRA) has been faulted the underwriters for failing to protect the public and policyholders from such an increase.
A number of insurance companies have 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.