Commuters now risk paying more for bus fare after matatu owners lost a crucial case involving raising Public Service Vehicles (PSVs) insurance premiums.
The Matatu Owners Association had sued insurance industry regulator, Insurance Regulatory Authority and Association of Kenya Insurers arguing that the new premiums would hurt PSVs and their clients.
According to the association, their right to earn a living by making profits from their vehicles had been breached.
They argued that insurance firms did not issue them with notices. While dismissing the case that has taken three years to determine, Justice Wilfrida Okwany said she was not convinced by the argument that the premium increments were unconstitutional.
“My take is that the mere fact that the petitioners were not pleased with the increment in premiums does not necessarily mean that the said increment was unlawful or unconstitutional. Needless to say, insurance companies operate in a free market economy where the cost of goods and services are dictated by the market forces,” ruled justice Okwany.
SOURCE: standardmedia.co.ke
