An Investigation of the Problems in the Compensation System for Personal Injuries and Deaths in Motor Insurance in Kenya
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Date
1992Author
Makembo, Solomon M
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
The Insurance industry plays a major socio-economic role
in a developing country like Kenya. The Motor Insurance
specifically is very vital in a growing economy like ours.
The vast aggregation of the premiums collections provides a
fund that is an important source of finance for not only the
private sector but also the public sector. The motor insurance
however, has reported a continuous decline in the profits record.
O~e of the prevailing setbacks to the insurance industry are the
problems which the present compensation system; fault-system,
pose.
This exploratory researh investigated into these problems
and sought further to identify the possible solutions to them.
The primary information for the research was collected by
use of questionnaires and a number of personal interviews. The
study sampled two populations that is the Insurance companies
offering Motor Insurance and the Judges in the High Court and
court of appeal at Nairobi.
The study revealed that the insurance companies have been
recording increasing losses on 'the business. Several problems
emanating from the Lawyers ambulance chasing the reinsurance,
the underwriting of the insurance, the characteristics of the
personal injuries and death claims, the determination of the
liability and quantum of damages under these claims and the
fault system itself we re identified.
The data collected was analysed by use of tables, percentages
and/or proportions. The analysis led to the conclusion that the
fault system should be replaced by a NO-FAULT system with the
further encouragement of out of court settlements to eliminate
all the problems affecting the nourishment of the Insurance.
Alternatively the solutions suggested should be implemented
to improve the present system of compensation.
Citation
Master of Business AdministrationPublisher
University of Nairobi School of Business, University of Nairobi