[2023] KEHC 1964 (KLR)
The court found that the defendant failed to pay the full premium as required by the insurance policy, and therefore the policy never became effective. The issuance of a certificate of insurance upon payment of the first instalment did not override the requirement for full payment before the policy could take...
Source-derived case information.
- Citation
- [2023] KEHC 1964 (KLR)
- Parties
- Plaintiff: Madison Insurance Company; Defendant: Gabriel Muthundi Maina; Interested Party: Onesmus Keli Muoki
- Court
- High Court
- Court Station
- High Court at Kiambu
- Jurisdiction
- Kenya
- Case Number
- Civil Case 26 of 2019
- Procedural Posture
- Civil Case / Judgment
- Outcome
- Judgment for the plaintiff. Declaratory orders granted. Costs awarded to the plaintiff.
- Judges
- MM Kasango
- Legal Topics
- Insurance Contracts, Policy Repayment Terms, Declaratory Relief, Default Judgment
- Source Language
- en
Source-derived case record
Summary, issues, holding and outcome
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Parties
Madison Insurance Company
Plaintiff
Gabriel Muthundi Maina
Defendant
Onesmus Keli Muoki
Interested Party
Procedural Posture
Civil Case / Judgment
Legal Issues
- 1 Whether the plaintiff is bound to indemnify the defendant under the insurance policy despite non-payment of the full premium.
- 2 Whether the plaintiff is liable to satisfy the judgment in Kiambu CMCC No 383 of 2019 arising from the accident involving the defendant's vehicle.
- 3 Whether the insurance policy was valid and effective at the time of the accident.
Ratio Decidendi
The court found that the defendant failed to pay the full premium as required by the insurance policy, and therefore the policy never became effective. The issuance of a certificate of insurance upon payment of the first instalment did not override the requirement for full payment before the policy could take effect. The defendant's failure to pay the remaining instalments and to surrender the certificate of insurance constituted a breach of the policy terms. As a result, Madison Insurance Company was not bound to indemnify the defendant or satisfy any judgment or claim arising from the accident involving the defendant's vehicle. The court granted the declaratory relief sought by the...
Court Disposition
Judgment for the plaintiff. Declaratory orders granted. Costs awarded to the plaintiff.
Orders
- A declaration is hereby made that the plaintiff is not bound to pay or satisfy the judgment in Kiambu CMCC No 383 of 2019 and/or indemnify the defendant against any claim in respect of death, bodily harm/injury to any person, damage or property or satisfy any claim whatsoever arising out of the accident on April 27,...
- The plaintiff is awarded costs of this suit to be paid by the defendant.
Full Case Text
Judgment text and source record
26 paragraphs
Madison Insurance Company v Maina; Muoki (Interested Party) (Civil Case 26 of 2019) [2023] KEHC 1964 (KLR) (17 March 2023) (Judgment)
Neutral citation: [2023] KEHC 1964 (KLR)
Republic of Kenya
In the High Court at Kiambu
Civil Case 26 of 2019
MM Kasango, J
March 17, 2023
Between
Madison Insurance Company
Plaintiff
and
Gabriel Muthundi Maina
Defendant
and
Onesmus Keli Muoki
Interested Party
Judgment
1. Madison General Insurance, filed this case against the defendant Gabriel Muthundi Maina and interested party Onesmus Kili Muoki. Both defendant and the interested party did not file an appearance or defence within the requisite period and on Madison making an application in court on July 23, 2021 entered interlocutory judgment in favour of Madison.
2. Madison formally proved its case on June 15, 2022.
3. The uncontroverted evidence is that the defendant was issued by Madison with an insurance policy cover proposal for his motor vehicle registration No KBP 217F. Madison assigned to the defendant policy No THK/701/130683/2017. That policy would become effective on the defendant paying the requisite premium for one year commencing September 3, 2018 to August 2, 2019. It was a term of the policy proposal that the defendant was required to pay premium for the policy before effective commencement of the policy. The defendant was permitted by Madison to settle full premium in three instalments. On payment of the first instalment, the defendant was issued with a certificate of insurance while awaiting the pay of the other two instalments. The defendant failed to honour the further instalments and consequently, the insurance policy did not take effect. Madison wrote to the defendant reminding him to make payment. The payments were not made.
4. On April 27, 2019 defendant’s afore said motor vehicle was involved in an accident along Kiambu/Nairobi road. The defendant was sued before Kiambu Chief Magistrate’s Court Civil Case No 383 of 2019.
5. Madison enumerated particulars of defendant’s breach of policy terms as:-a.Failing to abide by the terms of the policy.b.Failing to pay requisite premium.c.Failing to surrender the certificate of insurance after the lapse of the insurance policy.d.Misrepresenting road users he had a valid insurance policy with Madison.
6. The defendant has been served with notice of repudiation of the policy.
7. In view of the above evidence, I find that Madison is entitled to the declaratory orders it seeks.
Disposition 8. Judgment of this court is:-a.A declaration is hereby made that the plaintiff is not bound to pay/or satisfy the judgment in Kiambu CMCC No 383 of 2019 and/or indemnify the defendant against any claim in respect of death, bodily harm/injury to any person, damage or property or satisfy any claim whatsoever arising out of the accident on April 27, 2017 along Kiambu/Nairobi road involving motor vehicle registration No KBP 2017F.b.The plaintiff is awarded costs of this suit to be paid by the defendant.
JUDGMENT DATED AND DELIVERED AT KIAMBU THIS 17TH DAY OF MARCH, 2023. MARY KASANGOJUDGEIn the presence of:-Coram:Court Assistant :- MouriceInstructed by Kibatia & Co. Advocates for the Plaintiffs:- Ms. WakarimaFor Defendants :- N/AFor Interested Party:- N/ACourtJudgment delivered virtually.