#CofekRedAlert: Calling the Insurance Regulatory Authority on UAP-Old Mutual poor handling of the compensation of KCZ474F

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What UAP -Old Mutual Insurance recklessly said: Please note that the damage to the engine was caused by driving the vehicle in accident state. Before garaging ,the vehicle was driven for more than 20km,considering the radiator was damaged, the engine did not have sufficient cooling. This has also been confirmed by the mechanic. Caroline Kinuthia, Claims Department.

The Cofek position: UAP-Old Mutual cannot escape liability and direct responsibility for the woes of its’ customer and member of Cofek James Barmasai whom we have competency and authority to fully act for and represent in line with the Societies Act, Cap 108, Laws of Kenya

The insured position is as follows;

I write to bring to your attention a matter that has really been frustrating on my end since I filed this claim from UAP Insurance Company. Below is the history and ownership and a few facts on the motor vehicle.

  1. Date of accident – This was only 5 months after the car’s registration in Kenya. It occurred on 17th October 2021.
  2. Date delivered to garage (Sahota Body Works Garage, Lanet, Nakuru) – 26th October 2021.
  3. The car repairs were authorized by UAP.
  4. Prior to UAP’s authorization of repair, they didn’t share the initial assessor’s report with me and therefore a critical piece of information was withheld from me on the parts to be repaired.
  5. Authorization to collect repaired vehicle was issued on 23rd December 2021 (way over 21 days) as per the policy agreements
  6. Upon collection of the vehicle by my representative, he noticed the vehicle temperature gauge was high
  7. UAP instructed me to return the vehicle to the garage immediately.
  8. UAP through their appointed assessor started doing secondary assessment to determine the cause of the temperature gauge rising above normal upon short-driving.
  9. After a few weeks, UAP wrote to me a mail indicating probable engine damage was as a result of driving the vehicle from the scene of accident to the garage and requested that I engage my own mechanic to assess the vehicle and proposed that they will pay cash in lieu if the damage is related to the accident. This is contrary to the policy. It is contrary to UAP to insinuate that the vehicle had experienced engine failure prior to the accident.
  10. In good faith I engaged my mechanic Silas Nyango to check the vehicle on 10th February 2022. The mechanics findings were as follows; Leakage of oil and diesel under the vehicle; The accident damaged the radiator, turbo, intercooler and water pump resulting in immediate engine damage instantaneously; Mileage difference of 116km since delivery of the vehicle to the garage and the vehicle requires full engine overhaul or engine replacement.
  1. I communicated the same to UAP verbally of which they proposed a contribution of Sh100,000.00 for engine replacement assuming the cost of a new engine is Sh300, 000 and the rest was to be catered for by the insured – again, contrary to the insurance policy and the law having insured the vehicle through a comprehensive cover with an additional excess cover and having paid my premiums in full.
  2. It has been a very frustrating period for me to continue servicing the loan of the vehicle without enjoying its services for more than 3 months.
  3. The motor vehicle was my tool of trade for the performance of my duties at work. The delays have further gone into affecting my work function as an employed field-based engineer for my employer.
  4. The insurance wrote back to me Today, 22nd February 2022 absolving themselves.
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