Old Mutual General Insurance Kenya Limited is not liable to cover claims arising from an accident involving a school bus insured under Policy Number 140/813/001141/2012, the High Court in Kisumu has ruled.
The dispute centered on an accident that occurred on April 23, 2023, involving a motor vehicle (registration number KBL 230G) owned by Oder Boys Boarding Special School.
In a judgment delivered by the High Court in Kisumu on August 8, 2024, the vehicle, which was insured by Old Mutual General Insurance, was involved in a crash on the Kakamega-Kisumu road, resulting in injuries to several passengers.
Old Mutual General Insurance Kenya Limited argued that the insurance policy excluded coverage for any passengers not authorized under the policy’s terms.
Specifically, the policy covered only passengers carried for employment purposes or as part of the school’s activities. On the date of the accident, the bus was reportedly being used to transport church members, who were not covered by the policy.
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Judge Aburili noted that the insurance policy explicitly excluded coverage of passengers not carried under the terms of the policy. The court found that the use of the bus for transporting church members constituted a breach of the policy’s terms, as it was not used for the purposes for which it was insured.
The court determined that Old Mutual General Insurance Kenya Limited was not liable for the claims made by the unauthorized passengers or their families.
The judgment serves as a crucial reminder to educational institutions about the limitations of insurance coverage.
Schools were advised to thoroughly review their insurance policies and ensure that they are aware of the exclusions and conditions attached to their coverage.
The court also recommended that the Ministry of Education circulate this judgment to County Directors of Education (CDEs) to inform school management boards across the country.
By Frank Mugwe
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