We discuss a simple and experimentally realizable model for creation of enhanced Kerr nonlinearities accompanied by vanishing absorption. The model involves a V-type atom subjected to a strong drive laser, a weak probe laser and coupled to a single-mode cavity field. Working in the bad-cavity limit, we find that the simultaneous coupling of the cavity field to both atomic transitions creates a coherence between the transitions and thus can lead to quantum interference effects. We investigate the influences of the cavity field frequency, the cavity field-atom coupling constants and the atomic d...