A recent High Court judgment has significant implications for schools across Kenya that hire out their buses for public use.

In the case between Old Mutual General Insurance Kenya Limited and the Board of Directors of Ober Boys Boarding Special School, the court addressed a critical issue concerning the insurance coverage of school buses.

The case highlighted that schools frequently use their buses for transporting students and staff, but often these vehicles are also hired out for community events such as funerals, weddings, and religious gatherings.

This practice, however, exposes a major risk, as the insurance policies for these buses typically exclude coverage for passengers who are not authorised under the standard policy terms.

The judgment, delivered on  August 8, 2024, underscores a stark reality: "The insurance policy that they take out happens to exclude those kinds of passengers otherwise known as unauthorized passengers."

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The court noted that when accidents occur involving these 'unauthorised passengers,' the insurance policy is often voided. As a result, schools could face substantial financial liabilities for damages, with affected parties left in a precarious position.

The court's decision serves as a warning to all schools and institutions that hire out their buses.

It advises: "Schools, mostly, are the culprits of what is about to be unravelled in this case."

The judgment further cautions: "For those who hire school buses, ensure that you read the insurance policy in respect of the usage of those buses before you part with any money and risk the lives and limb of the innocent unauthorized passengers."

In light of this ruling, it is recommended that the County Directors of Education disseminate this information to all schools, urging them to review their insurance policies and practices regarding the hiring of school buses.

The court expressed hope that this judgment will alert School Management Boards to the risks involved and encourage them to make informed decisions to avoid future legal and financial repercussions.

This significant ruling serves as a stark reminder of the importance of comprehensive insurance coverage and careful management of school resources.