| dc.description.abstract | The purpose of this study was to determine how the implementation of Legal Notice
Number 161 in 2003 by the Government has influenced insurer’s practices with
respect to underwriting and claims in the PSV sector. The study focused on ‘Matatus’
where there was little enforcement of the law prior to the introduction of the legal
notice. The study had two objectives, namely, to determine how the provisions of
Legal Notice Number 161 have affected the underwriting and claims process of PSV
insurers in Kenya and to determine challenges faced in the underwriting and claims
process by PSV insurers.
The literature review explored concepts in risk and insurance, reviewed underwriting
considerations in commercial motor vehicles, moral hazard and adverse selection
challenges in automobile insurance, commercial motor vehicle insurance claims
process, and the commuter transport sector in Kenya. The commuter transport sector
analysis of the situation before and after the implementation of legal notice number
161. Finally, it reviews general challenges faced in insuring public service vehicles in
Kenya. The study used an exploratory survey design. The population of study was
confined to the six insurance firms which insured PSV. Data was collected by means
of a questionnaire that employed open and closed ended questions. Descriptive
statistics consisting of the arithmetic mean, standard deviation, and graphical methods
were used to present the findings | en |
