Honour policy terms to build confidence, IRA tells insurers

Risks in life and business are inevitable and insurance is the safest net to cushion and ease the impact that comes with these risks. [iStockphoto]

The insurance regulator has told underwriters to honour policy terms with their customers to grow the industry.

The Insurance Regulatory Authority revealed that between January and March, about 486 complaints were lodged by customers and policy holders.

Of these, 79 per cent involved general insurance while 21 per cent entailed long term insurance.

IRA Manager, Intermediaries, Jacqueline Nanyama said owing to the fact that insurers sell intangible promises, the only way to prove the worth of it is to pay the claims when due.  

She said about 90 per cent of the complaints involved delayed settlement of claims or unsatisfactory services.

“I call upon players in the insurance industry to ensure fair treatment of their customers as this can greatly reduce the number of complaints and also boost the confidence in insurance as a whole,” she said.

Ms Nanyama spoke during the presentation of a Sh1.2 million compensation cheque to traders based at Toi Market, Nairobi, who were affected by a fire incident in June.

The traders were clients of Musoni Microfinance, whose loan facilities have an embedded insurance cover for fire, death, or hospitalisation.

The insurance product is provided in partnership with Turaco, a micro-insurance technology firm, and APA Apollo Group, who are the underwriters.

Turaco General Manager Bryan Nyutu said the payout will serve as a stepping stone towards rebuilding.

“For many, recovery remains a challenge. We are thankful that microfinance institutions are now playing a vital role in providing holistic financial services that can enable recovery.”

APA Apollo Group Chief Executive Ashok Shah said that traders in bustling second-hand markets face heightened risk of fire incidents, often exarcebated by land disputes.

“This insurance provision has provided them with the much needed lifeline, cushioning their financial burdens as they endeavour to rebuild their businesses,” he said.

Musoni Microfinance CEO Barbra Asumadu said micro and small traders face challenging business environment as they navigate their daily circumstances and the fire incident was devastating.