21 years later, accident victims receive compensation

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Victims of road accidents involving United Insurance Company have received a sigh of relief after the insurer began paying third-party compensation claims, ending a 21-year wait for some victims.

The company’s liquidator, Kamal Bhatt, on Thursday issued cheques worth more than Sh38 million to 47 verified claimants, marking the first phase of a compensation exercise expected to cover other creditors.

For some beneficiaries, the payments come more than two decades after accidents left them with life-changing injuries, prolonged medical bills and years of uncertainty over compensation.

Among those who received compensation was Margaret Achieng from Lungalunga, whose life changed after a road accident in 1994 while travelling from Mombasa to Nairobi to purchase goods for her shop.

Achieng was hospitalised for several weeks after the accident, which claimed her left leg, leaving her an amputee for more than three decades.

“It has not been easy waiting for this money. We have made countless trips to United Insurance, and some of us have even been forced to sleep in their offices at some point,” she said.

“I am very grateful that today we have received our compensation after years of agony.”

Bhatt said the payments targeted third-party injury claims and expressed satisfaction at finally seeing victims receive compensation after years of waiting.

He noted that some claims dated back 26 years, having been lodged before United Insurance was placed under statutory management.

United Insurance was placed under statutory management on July 15, 2005, triggering a prolonged legal and administrative process that delayed payments to creditors.

Charles Mwangi, chairman of the company's liquidation committee, said the first payments marked an important milestone in a process that had tested the patience of claimants.

He attributed the prolonged delay to legal battles involving parties seeking to regain control of the insurer, adding that the courts had protected creditors' interests throughout the dispute.

Mwangi assured claimants that the company's records, assets and properties were being accounted for, urging those with outstanding claims to submit properly documented forms for verification.

“All genuine, documented and verified claims will be paid,” he said.

He added that properties belonging to the insurer would be recovered and sold at the best possible prices, with proceeds channelled towards settling creditors.

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On interest payments, Mongi said creditors would be considered after principal claims and liquidation expenses had been settled, depending on the funds available.

Bhatt, who was appointed liquidator in July 2024, said the process was being conducted transparently under court supervision, with oversight from a liquidation committee elected by creditors on September 11.

He said the ultimate goal was to settle outstanding obligations before any remaining funds could be handed to shareholders.

The liquidator is expected to proceed with subsequent phases of payments once additional claims have been verified.