Judge Sets Date for Hearing of Suit Against PSV Insurer

Nairobi, Aug 26, 2010 (The Nation/All Africa Global Media via COMTEX) -- An insurer cannot compensate policy-holders and accident victims because of a blanket court order blocking any payments, the High Court heard on Wednesday.

Lawyer Paul Muite told vacation judge Hannah Okwengu that the order barring more than 3,000 claimants from raising any claims against Directline Assurance Company Limited had hurt many.

He said hundreds of accident victims could not get proper medical services and that "some orphans are living in abject poverty since their guardians cannot access premiums paid to Directline."

He urged the judge to certify as urgent three cases filed by Mr Mwangi Mugo, Mr Patrick Ngunjiri Maina Ragoi and Ms Angela Amboko whose claims have been frozen by the order.

On June 24, Lady Justice Jean Gacheche granted orders to Directline blocking third parties from demanding any compensation.

The company alleged it had established that there were no valid insurance contracts between it and vehicles involved in accidents. The insurer said the claims were fake and police were investigating them.

Mr Muite said he would apply for the orders to be set aside and the court to compel Directline to deposit security for costs.

In a short ruling, Lady Justice Okwengu said: "I have heard submission advanced by Senior Counsel. I certify the cases urgent. The consolidated cases shall be heard on September 2, 2010."

Mr Muite was directed to serve Directline and the Attorney General with the suit papers.