Insurance (Motor Vehicle Third Party Risks) Act Kenya

Insurance (Motor Vehicle Third Party Risks) Act Kenya: Understanding the Law

The Insurance (Motor Vehicle Third Party Risks) Act Kenya is a legal framework that regulates the insurance industry in Kenya. It is a law that requires all motor vehicle owners in Kenya to have third-party insurance. This insurance provides cover against any liability that may arise as a result of an accident caused by the insured vehicle. The law aims to protect the victims of road accidents by ensuring that they receive compensation for any injuries sustained as a result of the accident.

The Insurance (Motor Vehicle Third Party Risks) Act Kenya was first introduced in 1949, and it has undergone several amendments throughout the years to keep up with the changing times. The latest amendment to the law was made in 2018, which introduced stiffer penalties for non-compliance. This article aims to provide a comprehensive understanding of the Insurance (Motor Vehicle Third Party Risks) Act Kenya, including its history, provisions, benefits, and penalties for non-compliance.

History of the Insurance (Motor Vehicle Third Party Risks) Act Kenya

The Insurance (Motor Vehicle Third Party Risks) Act Kenya was introduced in 1949 as a way of protecting the victims of road accidents. At the time, road accidents were becoming increasingly common, and victims were left to fend for themselves in the absence of a legal framework that could provide them with compensation. The law required all motor vehicle owners to have third-party insurance, which would provide cover against any liability that may arise as a result of an accident caused by the insured vehicle.

Over the years, the law has undergone several amendments to keep up with the changing times. In 2018, the law was amended to introduce stiffer penalties for non-compliance. The amendment was introduced as a way of addressing the issue of non-compliance, which had become rampant in the country. The government recognized the importance of the law in protecting the victims of road accidents and decided to take a tougher stance against non-compliance.

Provisions of the Insurance (Motor Vehicle Third Party Risks) Act Kenya

The Insurance (Motor Vehicle Third Party Risks) Act Kenya has several provisions that govern the insurance industry in Kenya. Some of the key provisions include:

1. Third-party insurance: The law requires all motor vehicle owners in Kenya to have third-party insurance. This insurance provides cover against any liability that may arise as a result of an accident caused by the insured vehicle.

2. Premium payment: The law requires motor vehicle owners to pay an annual premium for their third-party insurance. The premium is determined by the Insurance Regulatory Authority (IRA), which is a government agency responsible for regulating the insurance industry in Kenya.

3. Insurance certificate: The law requires motor vehicle owners to obtain an insurance certificate from their insurer. The certificate is proof that the vehicle is insured and is valid for one year.

4. Limits of liability: The law sets out the limits of liability for third-party insurance. The limit of liability for death or bodily injury is Kshs. 5 million per person, and Kshs. 10 million per occurrence. The limit of liability for property damage is Kshs. 2 million per occurrence.

Benefits of the Insurance (Motor Vehicle Third Party Risks) Act Kenya

The Insurance (Motor Vehicle Third Party Risks) Act Kenya has several benefits, both for motor vehicle owners and for victims of road accidents. Some of the key benefits include:

1. Protection for victims: The law provides protection for victims of road accidents by ensuring that they receive compensation for any injuries sustained as a result of the accident. This compensation can help them to pay for medical bills and other expenses related to the accident.

2. Peace of mind for motor vehicle owners: The law gives motor vehicle owners peace of mind by ensuring that they are protected against any liability that may arise as a result of an accident caused by their vehicle. This protection can help them to avoid financial ruin in the event of an accident.

3. Fairness: The law promotes fairness by ensuring that all motor vehicle owners are required to have third-party insurance. This means that victims of road accidents are not left to suffer because the driver who caused the accident cannot afford to pay for their injuries.

Penalties for Non-Compliance

The Insurance (Motor Vehicle Third Party Risks) Act Kenya imposes stiff penalties for non-compliance. Some of the key penalties include:

1. Fine: Motor vehicle owners who do not have third-party insurance are liable to pay a fine of Kshs. 10,000.

2. Imprisonment: Motor vehicle owners who are found guilty of driving without third-party insurance can be sentenced to up to three months in prison.

3. Revocation of driving license: Motor vehicle owners who are found guilty of driving without third-party insurance can have their driving license revoked.

Conclusion

The Insurance (Motor Vehicle Third Party Risks) Act Kenya is an important law that regulates the insurance industry in Kenya. It requires all motor vehicle owners to have third-party insurance, which provides cover against any liability that may arise as a result of an accident caused by the insured vehicle. The law has several benefits, including protection for victims of road accidents, peace of mind for motor vehicle owners, and fairness. However, non-compliance with the law can lead to stiff penalties, including fines, imprisonment, and revocation of driving license. As such, it is important for all motor vehicle owners in Kenya to ensure that they comply with the law to avoid these penalties.