The High Court has ruled that individuals or organizations hiring school buses for events such as crusades, weddings, or funerals are not eligible for insurance compensation in the event of an accident.
Justice Roselyne Aburili, presiding over the case in Kisumu, has instructed that her ruling be communicated to school boards to prevent the risks associated with unauthorized use of school buses.
This judgment stems from a civil case filed by Old Mutual General Insurance Kenya Limited against the board of directors of Oder Boys Boarding Special School.
The school had rented its bus to the Seventh-Day Adventist (SDA) Church, which used the vehicle to transport members to an event in Kakamega County.
The bus later crashed on the Kisumu-Kakamega road, resulting in numerous injuries among the passengers.
While the victims initially sought compensation, the cases were subsequently withdrawn.
Old Mutual then approached the court, arguing that the school had violated the insurance agreement by renting out the bus.
The insurer requested a court order declaring that it was not liable for any claims related to the April 23, 2023 accident.
The school admitted that the passengers were church members and that the insurance coverage did not extend to them.
The institution also argued that since the related lawsuits were withdrawn, the issue was moot.
On August 8, 2024, Justice Aburili ruled in favor of Old Mutual, determining that the insurer was not obligated to cover any claims arising from the accident.
The judge emphasized that school buses are insured exclusively for use by students and staff.
When these vehicles are rented out for other purposes, such as transporting individuals from the community or sponsors to various events, the insurance policy does not cover these unauthorized passengers.
Justice Aburili highlighted the common practice of schools renting out buses for events, which often leads to accidents and disputes over insurance coverage.
She urged school boards to carefully review insurance policies before renting out their buses and recommended that her ruling be disseminated through county education directors to alert schools about the risks involved.
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