JUDGMENT
A. Introduction
1. The Plaintiff instituted this suit by a Plaint dated 20th March 2025 seeking a declaratory order that it is not liable to satisfy or indemnify the Defendant in respect of claims arising from a road traffic accident involving motor vehicle registration number KDC 521W which occurred on 28th April 2024 along the Kisii–Oyugis Road.
2. The Plaintiff contends that although it had earlier issued an insurance policy covering the said motor vehicle, the policy had been cancelled prior to the accident due to non-payment of premiums.
3. The Defendant was served with Summons to Enter Appearance together with the Plaint and accompanying documents but failed to enter appearance or file a defence.
4. An affidavit of service sworn on 13th May 2025 confirms that the pleadings were served upon the Defendant through electronic means including WhatsApp after prior communication with him.
5. Consequently, interlocutory judgment was entered on 23rd June 2025, and the matter proceeded to formal proof.
B. The Plaintiff’s Case
6. The Plaintiff called one witness, Mercy Maweu, a Legal Officer of the Plaintiff company, whose written statement dated 20th March 2025 was adopted as her evidence.
7. Her testimony was that:
a. The Plaintiff had insured motor vehicle KDC 521W under policy number THQ-KAI/070/1/100195/2023.
b. The Defendant was the registered and beneficial owner of the said motor vehicle.
c. The insurance cover was issued on the basis that the Defendant would pay premiums as agreed.
d. However, the Defendant failed to renew or continue paying premiums.
e. As a consequence, the policy was cancelled on 5th March 2024 with effect from 21st December 2023.
8. The witness further testified that on 28th April 2024, after the cancellation of the policy, the said motor vehicle was involved in a road traffic accident along the Kisii–Oyugis Road, leading to the filing of Kisii CMCC No. E362 of 2024: Joshua Isaboke Onduso vs Reuben Bosire Onyancha.
9. The Plaintiff produced documentary evidence including:
a. Insurance policy documents
b. Policy cancellation communications
c. Overdue policy listings showing the Defendant’s policy among those cancelled for non-payment
d. Email communications confirming cancellation of the policy
e. A certificate authenticating electronic evidence.
10. The Plaintiff’s case is that since the insurance policy had already been cancelled before the accident, the Defendant had no valid insurance cover at the material time.
11. The Plaintiff therefore seeks a declaration that it is not liable to satisfy any judgment that may arise from the accident under the provisions of the Insurance (Motor Vehicle Third Party Risks) Act, Cap 405.
C. Issues for Determination
12. From the pleadings, evidence and submissions, the following issues arise for determination:
i. Whether there existed a valid insurance policy covering motor vehicle KDC 521W at the time of the accident.
ii. Whether the Plaintiff is under any obligation to satisfy any judgment arising from Kisii CMCC No. E362 of 2024.
iii. Who should bear the costs of this suit.
D. Whether there was a valid insurance policy at the time of the accident
13. The Plaintiff’s uncontroverted evidence shows that the Defendant had taken out an insurance policy with the Plaintiff but failed to pay or renew premiums, leading to cancellation of the cover.
14. The documentary evidence produced shows that the policy was cancelled on 5th March 2024 with effect from 21st December 2023 due to non-payment of premiums.
15. The accident giving rise to the primary suit occurred on 28th April 2024, which was several months after the cancellation of the policy.
16. Section 156(1) of the Insurance Act (Cap 487) provides that:
“No insurer shall assume a risk in Kenya in respect of insurance business unless and until the premium payable thereon is received by him or is guaranteed to be paid…”
17. The effect of the above provision is that payment of premium constitutes the consideration for an insurance contract.
18. The High Court in Insurance Company of East Africa v Marwa Distributors Ltd [2015] eKLR held that an insurer cannot be liable under a policy where the premium forming consideration for the insurance contract has not been paid.
19. Applying that principle to the present case, once the Defendant failed to pay the premiums leading to cancellation of the policy, the contract of insurance ceased to exist.
20. I therefore find that no valid insurance policy existed at the time of the accident.
E. Whether the Plaintiff is obliged to satisfy the judgment in the primary suit
21. The Plaintiff seeks a declaratory order to avoid liability under Section 10 of the Insurance (Motor Vehicle Third Party Risks) Act.
22. Under that provision, an insurer is generally required to satisfy judgments obtained against persons insured under the policy.
23. However, the statutory obligation arises only where a valid policy of insurance existed at the material time.
24. In this case, the evidence demonstrates that:
a. the insurance policy had been cancelled before the accident, and
b. the Defendant was not insured by the Plaintiff at the time of the accident.
c. In those circumstances, the Plaintiff cannot be compelled to satisfy any judgment that may arise from the accident.
25. I therefore find that the Plaintiff has no statutory or contractual obligation to indemnify the Defendant or satisfy any decree arising from Kisii CMCC No. E362 of 2024.
F. Disposition
27. In the result, the Plaintiff has proved its case on a balance of probabilities.
28. Accordingly, judgment is entered in favour of the Plaintiff in the following terms:
a. A declaration is hereby issued that the Plaintiff, Kenyan Alliance Insurance Company Limited, is not liable to satisfy any judgment or decree in Kisii CMCC No. E362 of 2024: Joshua Isaboke Onduso vs Reuben Bosire Onyancha arising from the road traffic accident that occurred on 28th April 2024 involving motor vehicle registration number KDC 521W.
b. The Plaintiff is not under any obligation to indemnify the Defendant under the insurance policy number THQ-KAI/070/1/100195/2023.
c. The Defendant shall bear the costs of this suit .
T.A ODERA
JUDGE
4.3.26
DELIVERED VIRTUALLY VIA TEAMS PLATFORM ON THIS 4TH DAY OF MARCH 2026 IN THE PRESENCE OF CA KIPCHIRCHIR .NO APPEARANCE FOR PLAINTIFF.
A. Introduction
1. The Plaintiff instituted this suit by a Plaint dated 20th March 2025 seeking a declaratory order that it is not liable to satisfy or indemnify the Defendant in respect of claims arising from a road traffic accident involving motor vehicle registration number KDC 521W which occurred on 28th April 2024 along the Kisii–Oyugis Road.
2. The Plaintiff contends that although it had earlier issued an insurance policy covering the said motor vehicle, the policy had been cancelled prior to the accident due to non-payment of premiums.
3. The Defendant was served with Summons to Enter Appearance together with the Plaint and accompanying documents but failed to enter appearance or file a defence.
4. An affidavit of service sworn on 13th May 2025 confirms that the pleadings were served upon the Defendant through electronic means including WhatsApp after prior communication with him.
5. Consequently, interlocutory judgment was entered on 23rd June 2025, and the matter proceeded to formal proof.
B. The Plaintiff’s Case
6. The Plaintiff called one witness, Mercy Maweu, a Legal Officer of the Plaintiff company, whose written statement dated 20th March 2025 was adopted as her evidence.
7. Her testimony was that:
a. The Plaintiff had insured motor vehicle KDC 521W under policy number THQ-KAI/070/1/100195/2023.
b. The Defendant was the registered and beneficial owner of the said motor vehicle.
c. The insurance cover was issued on the basis that the Defendant would pay premiums as agreed.
d. However, the Defendant failed to renew or continue paying premiums.
e. As a consequence, the policy was cancelled on 5th March 2024 with effect from 21st December 2023.
8. The witness further testified that on 28th April 2024, after the cancellation of the policy, the said motor vehicle was involved in a road traffic accident along the Kisii–Oyugis Road, leading to the filing of Kisii CMCC No. E362 of 2024: Joshua Isaboke Onduso vs Reuben Bosire Onyancha.
9. The Plaintiff produced documentary evidence including:
a. Insurance policy documents
b. Policy cancellation communications
c. Overdue policy listings showing the Defendant’s policy among those cancelled for non-payment
d. Email communications confirming cancellation of the policy
e. A certificate authenticating electronic evidence.
10. The Plaintiff’s case is that since the insurance policy had already been cancelled before the accident, the Defendant had no valid insurance cover at the material time.
11. The Plaintiff therefore seeks a declaration that it is not liable to satisfy any judgment that may arise from the accident under the provisions of the Insurance (Motor Vehicle Third Party Risks) Act, Cap 405.
C. Issues for Determination
12. From the pleadings, evidence and submissions, the following issues arise for determination:
i. Whether there existed a valid insurance policy covering motor vehicle KDC 521W at the time of the accident.
ii. Whether the Plaintiff is under any obligation to satisfy any judgment arising from Kisii CMCC No. E362 of 2024.
iii. Who should bear the costs of this suit.
D. Whether there was a valid insurance policy at the time of the accident
13. The Plaintiff’s uncontroverted evidence shows that the Defendant had taken out an insurance policy with the Plaintiff but failed to pay or renew premiums, leading to cancellation of the cover.
14. The documentary evidence produced shows that the policy was cancelled on 5th March 2024 with effect from 21st December 2023 due to non-payment of premiums.
15. The accident giving rise to the primary suit occurred on 28th April 2024, which was several months after the cancellation of the policy.
16. Section 156(1) of the Insurance Act (Cap 487) provides that:
“No insurer shall assume a risk in Kenya in respect of insurance business unless and until the premium payable thereon is received by him or is guaranteed to be paid…”
17. The effect of the above provision is that payment of premium constitutes the consideration for an insurance contract.
18. The High Court in Insurance Company of East Africa v Marwa Distributors Ltd [2015] eKLR held that an insurer cannot be liable under a policy where the premium forming consideration for the insurance contract has not been paid.
19. Applying that principle to the present case, once the Defendant failed to pay the premiums leading to cancellation of the policy, the contract of insurance ceased to exist.
20. I therefore find that no valid insurance policy existed at the time of the accident.
E. Whether the Plaintiff is obliged to satisfy the judgment in the primary suit
21. The Plaintiff seeks a declaratory order to avoid liability under Section 10 of the Insurance (Motor Vehicle Third Party Risks) Act.
22. Under that provision, an insurer is generally required to satisfy judgments obtained against persons insured under the policy.
23. However, the statutory obligation arises only where a valid policy of insurance existed at the material time.
24. In this case, the evidence demonstrates that:
a. the insurance policy had been cancelled before the accident, and
b. the Defendant was not insured by the Plaintiff at the time of the accident.
c. In those circumstances, the Plaintiff cannot be compelled to satisfy any judgment that may arise from the accident.
25. I therefore find that the Plaintiff has no statutory or contractual obligation to indemnify the Defendant or satisfy any decree arising from Kisii CMCC No. E362 of 2024.
F. Disposition
27. In the result, the Plaintiff has proved its case on a balance of probabilities.
28. Accordingly, judgment is entered in favour of the Plaintiff in the following terms:
a. A declaration is hereby issued that the Plaintiff, Kenyan Alliance Insurance Company Limited, is not liable to satisfy any judgment or decree in Kisii CMCC No. E362 of 2024: Joshua Isaboke Onduso vs Reuben Bosire Onyancha arising from the road traffic accident that occurred on 28th April 2024 involving motor vehicle registration number KDC 521W.
b. The Plaintiff is not under any obligation to indemnify the Defendant under the insurance policy number THQ-KAI/070/1/100195/2023.
c. The Defendant shall bear the costs of this suit .
T.A ODERA
JUDGE
4.3.26
DELIVERED VIRTUALLY VIA TEAMS PLATFORM ON THIS 4TH DAY OF MARCH 2026 IN THE PRESENCE OF CA KIPCHIRCHIR .NO APPEARANCE FOR PLAINTIFF.