Constitutionality of Structured Compensation Liability and Limitation of Liability in Motor Vehicle Insurance

In the case of Justus Muthiga and others vs. The Law Society of Kenya, the Court of Appeal of Kenya held that section 3 (a) (as read with section 6) of the Insurance (Motor Vehicle Third Party Risks) (Amendment) Act (No. 50 of 2013) (hereinafter the Amendment Act) which sought to introduce the Structured Compensation Liability schedule, purporting to give universal pre-determined compensation in respect of particular injuries was not Constitutional. The judges argued that the schedule cannot be incorporated into any judgment without affecting the validity of the judgment, and in effect impugning the authority of the court. The judges further held that section 5 (b) of the principal Act, which sought to limit the maximum quantum of damages payable to each victim of a motor vehicle accident to Kshs. 3,000,000 was not unconstitutional but went on to hold that since the apportionment of liability, post judgment, would not be a judicial function, then to that extent, the intention of Parliament was unconstitutional. Parliament and the insurance industry should carefully consider this judgment and realize that limitation of liability is possible if apportionment of the said liability is left to the judiciary.

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  • Lanny Turnner

    2018-07-09 15:39:06

    With thanks! Valuable information!

  • Wai Rotering

    2018-08-21 22:54:54

    I have seen that car insurance organizations know the automobiles which are at risk from accidents as well as other risks. In addition they know what kind of cars are susceptible to higher risk and the higher risk they may have the higher your premium amount. Understanding the uncomplicated basics regarding car insurance will allow you to choose the right form of insurance policy that can take care of your preferences in case you happen to be involved in any accident. Thanks for sharing a ideas on your own blog.

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