The Insurance Regulatory Authority has proposed a plan to penalize all insurers who delay settling of claims after 90 days when all the documentation have been filed.
In its new five-year strategic plan (2018-2022), the regulatory body noted that in order to protect the interest of the
This is aimed at curbing the low settlement ratio of claims which has been blamed on delayed tactics employed by insurers when claims are due.
“Champion treating customers fairly, ensure timely settlement of claims and enhancing information disclosure,” were listed as other strategies meant to boost consumer protection and education.
IRA CEO, Godfrey Kiptum also noted that the agency seeks to ensure consumer education activities are strengthened through dedicated public education and promoting Insurance awareness programmes i.e. insurance clinics, insurance champions, ASK shows,
In the report, IRA pointed out that the insurance sector has continued to register growth in gross written premiums rising from Kshs 109 billion in 2013 to Ksh 207 billion in 2017, with an average growth of 13% per annum.
“The insurance premium levy has grown from Kshs 1.2 billion in 2013 to Kshs 1.8 billion by end of 2016/17 FY.” part of the report stated.
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