Beja v Directline Assurance Company Ltd (Civil Case E1305 of 2023) [2026] KEMC 173 (KLR)
The bottom line
#What this practically means
#Executive summary
#Key legal issues
#Whether the Defendant insured motor vehicle KBJ 803X under Policy No. P/NO.04039242
On a balance of probabilities, the vehicle was insured by the Defendant under the stated policy; the insurer's bare allegation of fraud was unproved.
The Plaintiff produced a Police Abstract identifying the Defendant as insurer, which was prima facie evidence shifting the evidential burden. The Defendant, though it pleaded fraud and forgery, attended no hearing and called no witness from its underwriting, claims or records department, and produced no insurance register or other documentary rebuttal. Pleadings are not evidence, and unproved allegations of fraud could not displace the Plaintiff's uncontroverted evidence.
Whether the statutory notice under Section 10(2)(a) of Cap 405 was served
Service was proved; the statutory notice and demand letter bore the Defendant's official receiving stamp dated 21st April 2020.
Section 10(2)(a) requires notice of proceedings to be given to the insurer before or within fourteen days after commencement. The documents produced bore the Defendant's official acknowledgement stamp. The Court, in a ruling of 30th April 2026, had already found an earlier finding of non-service erroneous because the documents bore the Defendant's acknowledgement stamp; stamped copies on the record were incontrovertible evidence of receipt.
Whether the Plaintiff established a case for a declaratory order under Section 10 of Cap 405
Yes; the insurer is statutorily bound to satisfy the unsatisfied decree obtained against the insured persons.
Section 10(1) imposes a statutory obligation on the insurer to satisfy judgments against persons it insured for liabilities covered by the policy. The Plaintiff proved the accident, the existence of cover, service of statutory notice, the primary suit, entry of judgment, and non-satisfaction of the decree. Relying on Joseph Mwangi Gitundu v Gateway Insurance Co. Ltd, the statutory obligation becomes enforceable once the conditions prescribed by the Act are satisfied.
Legal principles established
#- A Police Abstract is not conclusive proof of insurance but constitutes prima facie evidence of the matters stated therein, shifting the evidential burden to the insurer to rebut it.
- Allegations of fraud must be specifically pleaded and strictly proved; mere allegations in a defence without evidence do not amount to proof.
- Stamped copies of a statutory notice on the court record constitute incontrovertible evidence of receipt by the insurer.
Court orders
#- 1.A declaration that Directline Assurance Company Limited is liable under Section 10 of the Insurance (Motor Vehicles Third Party Risks) Act, Cap 405 to satisfy the decree in Mombasa SRMCC No. E485 of 2020, Ronald Katana Beja v Mohamed Salim & Shawgi Hood Abeid
- 2.The Defendant to pay the Plaintiff the decretal sum of Kshs. 308,800/= arising from Mombasa SRMCC No. E485 of 2020
- 3.Interest on the decretal sum at court rates from 2nd October 2023 until payment in full
- 4.Costs of the declaratory suit to the Plaintiff with interest at court rates from the date of taxation until payment in full
- 5.Upon payment of the decretal sum, interest and costs, the Defendant shall stand discharged from its statutory obligation arising from the judgment in Mombasa SRMCC No. E485 of 2020
- Jurisdiction invoked
- Section 10 of the Insurance (Motor Vehicles Third Party Risks) Act, Cap 405 Laws of Kenya
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Beja v Directline Assurance Company Ltd (Civil Case E1305 of 2023) [2026] KEMC 173 (KLR)", Case Analysis (2026). Declaratory suit under Section 10, Insurance (Motor Vehicles Third Party Risks) Act, Cap 405 (arising from Mombasa SRMCC No. E485 of 2020). Source: https://new.kenyalaw.org/akn/ke/judgment/kemc/2026/173/eng@2026-06-25
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.