Monarch Insurance Company Limited v Swaleh Moi Juma [2020] KEHC 8944 (KLR)

Facts

The plaintiff insurer sued the defendant, the insured, seeking a declaration that it is not bound to make payments or indemnify the defendant under the insurance policy cover in respect of any claim arising out of a road traffic accident involving the defendant's vehicle.

Issues

1. Whether the defendant's representation to the plaintiff insurer that the motor vehicle would be used for social, private, and pleasure purposes, and not to carry fare-paying passengers, was material.
2. Whether the plaintiff insurer can avoid the policy under the Insurance Motor Third Party Risks Act Cap 403 Laws of Kenya due to the defendant's misrepresentation.

Reasoning

The court determined that the defendant's representation was material and that the plaintiff insurer can avoid the policy under the Act due to the misrepresentation.

Outcome

The plaintiff insurer's claim was upheld.

Authorities cited