Point in Time
Act No: CAP. 405
Act Title: INSURANCE (MOTOR VEHICLES THIRD PARTY RISKS)
[ Date of commencement: 1st October, 1946. ]
1.
Short title

This Act may be cited as the Insurance (Motor Vehicles Third Party Risks) Act.

2.
Power to suspend operation of Act

The Minister may, by notice in the Gazette, suspend or restrict the operation of this Act.

4.
Motor vehicles to be insured against third party risks
(1)

Subject to this Act, no person shall use, or cause or permit any other person to use, a motor vehicle on a road unless there is in force in relation to the user of the vehicle by that person or that other person, as the case may be, such a policy of insurance or such a security in respect of third party risks as complies with the requirements of this Act.

(2)

Any person who contravenes subsection (1) shall be guilty of an offence and be liable to a fine not exceeding ten thousand shillings or to imprisonment for a term not exceeding two years or to both, and such person upon a first conviction for such offence may, and upon a second or subsequent conviction for any such offence shall, unless the court for special reason thinks fit to order otherwise, be disqualified from holding or obtaining a driving licence or provisional licence under the Traffic Act (Cap. 403) for a period of twelve months from the date of such conviction or for such longer period as the court may think fit.

(3)

This section shall not apply to any motor vehicle owned by the Government, or to a motor tractor or other motor vehicle used solely or mainly for agricultural purposes, if the use of such motor tractor or other motor vehicle on a road consists only of moving it by road from one part of the land of the owner thereof to another part of the land of such owner.

[Act No. 27 of 1949, s. 2, Act No. 28 of 1961, Sch., L.N. 462/1963, Sch., Act No. 21 of 1966, First Sch., Act No. 5 of 1971, s. 8.]

7.
Certificate of insurance
(1)

A certificate of insurance shall be issued by the insurer to the person by whom a policy of insurance is effected.

(2)

Such certificate shall be in the prescribed form and shall contain such particulars of any conditions subject to which the policy is issued and of any matters as may be prescribed, and different forms and different particulars may be prescribed in relation to different cases or circumstances.

8.
Certain conditions in policies of insurance of no effect

Any condition in a policy of insurance providing that no liability shall arise under the policy, or that any liability so arising shall cease, in the event of some specified thing being done or omitted to be done after the happening of the event giving rise to a claim under the policy, shall, as respects such liabilities as are required to be covered by a policy under section 5, be of no effect:

Provided that nothing in this section shall be taken to render void any provision in a policy requiring the persons insured to repay to the insurer any sums which the latter may have become liable to pay under the policy and which have been applied to the satisfaction of the claims of third parties.

9.
Display, etc., of certificates of insurance
(1)

Any person driving a motor vehicle on a road or owning a motor vehicle so driven, in respect of which a policy of insurance is required to be in force under this Act, shall carry and display or cause to be carried and displayed on the vehicle a certificate of insurance in the prescribed form, place and manner.

(2)

If, in any case, owing to the presence of a motor vehicle on a road an accident occurs whereby injury is caused to any person, and a certificate of insurance required under this Act is not inspected by a police officer at or near the site of the accident, the driver or the owner of that vehicle shall as soon as reasonably possible, and in any case within twenty-four hours of the occurrence of the accident, show or cause to be shown at a police station or to a police officer the certificate of insurance in force in respect of that vehicle either on the vehicle or, if the vehicle cannot reasonably be produced, detached from the vehicle.

(3)

Any person who fails to display a certificate of insurance in accordance with subsection (1) or to comply with the requirements of subsection (2) shall be guilty of an offence.

(4)

The owner of a motor vehicle shall, within seven days after having received an oral or a written request to that effect, give such information as he may be required to give by a police officer for the purpose of determining whether the vehicle was or was not being driven in contravention of section 4, and if the owner fails to do so he shall be guilty of an offence.

9A.
Provision with regard to foreign vehicles
(1)

Notwithstanding the provisions of section 5, where there is in existence in respect of any motor vehicle a valid certificate issued under any law in force in any country specified by the Minister by notice in the Gazette, no person using that motor vehicle on any road in Kenya shall be required to produce a policy of insurance or a security in respect of third party risks required under section 4.

(2)

It shall be the duty of the person to whom the provisions of this section apply to give such information as he may be required to give to, or on behalf of, the Commissioner of Police for the purpose of determining whether the vehicle was or was not being driven in contravention of section 4.

11.
Penalty for false statement or act causing avoidance of policy

If any person, for the purpose of obtaining a policy of insurance as required by section 5, 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.

13.
Duty to surrender certificate of insurance on cancellation of policy

Where a certificate of insurance has been issued under section 7 to the person by whom a policy has been effected and the policy is cancelled by mutual consent or by virtue of any provision in the policy, the person to whom the certificate was issued shall, within seven days from the taking effect of the cancellation, surrender the certificate to the insurer or, if it has been lost or destroyed, make a statutory declaration to that effect, and if he fails so to do he shall be guilty of an offence.

14.
Production of certificate of insurance on application for motor vehicle licence

A person who applies for a licence or the renewal of a licence in respect of a motor vehicle under the Traffic Act (Cap. 403) shall produce such evidence as may be prescribed that either—

(a)

a certificate of insurance stating that on the date when the licence comes into operation there will be in force the necessary policy of insurance or the necessary security in relation to the user of the vehicle by the applicant or by other persons on his order or with his permission; or

(b)

the vehicle is a vehicle to which subsection (3) of section 4 of this Act applies.

16.
Avoidance of restrictions on scope of policies

Where a certificate of insurance has been issued under section 7 to the person by whom a policy has been effected so much of the policy as purports to restrict the insurance of the persons insured thereby by reference to any of the following matters—

(a)

the age or physical or mental condition of persons driving the vehicle; or

(b)

the condition of the vehicle; or

(c)

the number of persons that the vehicle carries; or

(d)

the weight or physical characteristics of the goods that the vehicle carries; or

(e)

the times at which or the areas within which the vehicle is used; or

(f)

the horse-power or value of the vehicle; or

(g)

the carrying on the vehicle of any particular apparatus; or

(h)

the carrying on the vehicle of any particular means of identification other than any means of identification required to be carried by or under the Traffic Act (Cap. 403),

shall, as respects such liabilities as are required to be covered by a policy under paragraph (b) of section 5, be of no effect:

Provided that nothing in this section shall require an insurer to pay any sum in respect of the liability of any person otherwise than in or towards the discharge of that liability, and any sum paid by an insurer in or towards the discharge of any liability of any person which is covered by the policy by virtue only of this section shall be recoverable by the insurer from that person.

18.
Rules

The Minister may make rules prescribing anything required by this Act to be prescribed, and generally for the better carrying out of the provisions of this Act.

SCHEDULE

[Section 10, Act No. 50 of 2013, s. 6.]