Reprieve for NHIF as review board okays Sh900 million civil servants cover
SEE ALSO :NHIF spends up to Sh65m on addictsLast expense National Police Service members are only entitled to last expense with all cadres getting a uniform Sh250,000. In parastatals and other institutions, the lowest cadres are entitled to Sh850,000 for group life and a further Sh120,000 as last expense. Senior most staff will get Sh5 million for group life and Sh300,000 for last expense. The Faith Waigwa-led board found that the application by a consortium of insurance firms of UAP Life Assurance did not merit to warrant the cancellation of the tender. Through Ogetto Otachi and Company Advocates, NHIF successfully argued for the application to be thrown out, saying the UAP-led consortium used obsolete regulations hence losing its bid. Obsolete law According to the review board, UAP’s consortium that include ICEA and Sanlam insurances and a third consortium of Britam, CIC and Pioneer, used an obsolete law while tendering for the deal. The insurer awarded the contract to the consortium of Jubilee, Madison and Gemenia insurances at Sh890,455,966 on February 12 after it emerged as the lowest evaluated bidder in the group life and last expense insurance cover for the over 400,000 civil servants. The rival consortium of UAP, ICEA and Sanlam insurances and consortium of Britam, CIC and Pioneerhad both quoted Sh970,359,691.33 prompting one of the losers to appeal for a review. The review board found that whereas UAP and Britam consortium had purported to apply the guidelines of 2012, which have since been repealed, they did not adhere to them. The replaced guidelines set rates of 5.5 per cent in every Sh1,000 for group life scheme and 7.7 per cent for every Sh1,000 for last expense schemes yet two two losers applied just one rate. “The board finds that it’s questionable that both the applicant (UAP) and Britam consortium failed to apply the minimum rates of 7 per cent for last group expense scheme provided in the 2012 regulations,” ruled the board.