We have noted complains that over 8 vehicles are currently impounded by Ruaraka Auto Garage following a payment dispute spanning several months. The garage claims that the insurance company has failed to pay its debts running into several millions forcing them to impound the client vehicles.
The impounded vehicles belong to Resolution Insurance comprehensive motor insurance clients. The vehicles were involved in different accidents from the year 2021 to date. The vehicles were then taken to Resolution Insurance assessment center where they were assessed. Ruaraka Garage then agreed to take the vehicles for repair. Repair authority was issued to the garage by the insurance company and the garage began respective repairs.
The garage has since stalled on completing relevant repairs and has denied vehicle owners access to their vehicles. The garage owner has also refused vehicle owners request to pay for their own vehicle repair costs claiming that the garage will only return vehicles to the vehicle owners once Resolution Insurance settles invoices from previously repaired and released vehicles.
The vehicle owners have continued to suffer under the stalemate where they have been forced to hire vehicles and organize alternative transport means. Complains filed with Insurance Regulatory Authority (IRA) are yet to bear any fruit with vehicle owners still in limbo wondering what will happen next.
The main question on our mind is whether it is legal and ethical for a garage to withhold an insured vehicle not owned by the Insurance Company? The insurance company suffers no additional loss for vehicles impounded by the garage, the vehicle owners suffer daily losses for the predicament caused by a local arrangement between a garage and an insurance company.
Share your thoughts on this.