Insurance firms compensate risks, they do not stop them from happening
SEE ALSO :Search for Nakuru killer motorist on“Investigation should be carried to ascertain why they insured motor vehicle registration No. KBX 092J- Isuzu bus despite the obvious ‘defaults’ of the bus and also whether the insurance company is financially sound to meet its obligations,” Haji told the Inspector-General of Police Joseph Boinett in a letter dated November 8. Does the DPP, however, have a say as to what risk an insurance company can underwrite? Under risk-based insurance, the industry regulator, Insurance Regulatory Authority is the arm tasked with determining risk levels which measure the ability to pay rather than being used to deny insurance. Further, the insurance had expired two months prior to the unfortunate incident which means the insurance firm bears no liability over the risk. The Insurance (Motor Vehicles Third Party Risks) Act requires a person taking insurance to make certain declarations shifting responsibility from the firm to the vehicle owner. “If any person, for the purpose of obtaining a policy as required… makes any false statement in consequence whereof the policy is liable to be avoided or does or omits to do anything by virtue of which he becomes disentitled to claim under the policy, he shall be guilty of an offence.” Finally, once a car is insured, for the period within which it is insured it is not subject to further inspection by the insurance firm but rather an assessment when the risk actually occurs.