The new law creates a well defined compensation Liability schedule. It defines the maximum compensation that should be paid with respect to death and the compensation for lost body parts based on the income levels and the nature of the injuries sustained by an individual involved in a road accident.  This amendment was long awaited by players in the insurance industry for a long time. The AKI (Association of Kenya Insurance) has been lobbying for this since 2008. 

The law will be a relief to insurers who have for years been blamed when rogue members of the judiciary, lawyers and doctors settled fraudulent claims. This new law is seen as a major step towards curbing corruption that has been prevalent in the insurance industry. Furthermore, it will help to bring a more equitable way of compensating individuals involved in accidents.  This is because unlike the current arrangement that depends on scientific calculations to come up with the compensation amount, the new law requires that everyone should be compensated based on their earning capacity.