Commentaries From Our Desk

24 Feb, 2025

Why Are Conveyancing Delays Still A Norm In Kenya's Property Market?

Silas Akiro

5 min Read

Delays in processing motor vehicle accident claims have become a common frustration for many policyholders in Kenya. Often, insurance companies promise swift vehicle assessment and repairs but leave clients in limbo for weeks or even months. These delays not only inconvenience the insured but also raise questions about whether insurers are intentionally using stalling tactics to avoid or minimize liability. One common tactic involves prolonged assessment periods where insurance-appointed assessors take inordinate amounts of time to evaluate damage. Even after assessments are completed, approvals for repair are often delayed without clear justification. This raises concerns that such inefficiencies are by design rather than mere administrative lapses. In Lilian Wangari Kariuki v Directline Assurance Co. Ltd [2021], the court held that failure to act on an insurance claim within a reasonable time amounted to bad faith.

In some cases, insurance companies approve repairs but fail to release the funds to garages, creating a financial bottleneck. The vehicle owner is left stranded, often having to pay out-of-pocket or endure lengthy waits. Such scenarios reflect poorly on insurers’ duty to act in utmost good faith, a legal principle central to insurance contracts. It also places the insured at a disadvantage, particularly where they rely on the vehicle for livelihood or essential mobility. Some insurers use the delay as an informal investigation tool, hoping that the insured will either abandon the claim or accept partial settlements. In APA Insurance Ltd v Michael Ken Odhiambo [2022], the court frowned upon unjustified delays and emphasized the importance of timely claims processing to preserve public trust in insurance services. When insurers exploit the vulnerability of policyholders during distress, the integrity of the industry is severely compromised.

While regulatory bodies like the Insurance Regulatory Authority (IRA) have issued guidelines on timelines for claim settlements, enforcement remains weak. Without stronger oversight and accountability mechanisms, insurers may continue using delays as a tactic to frustrate claims. Consumers should be more proactive in demanding timelines in writing and escalating disputes to the IRA or the courts where necessary to ensure fair treatment.