Kenya insurers and providers agree to hasten claims payment

NAIROBI: It will be easier now for insurance companies to settle motor claims presented by policy holders, thanks to a new initiative launched yesterday by the industry players.

Insurers and motor claims service providers unveiled revised Standards for commercial and private motor claims with a view to increasing efficiency in claims settlement.

Association of Kenya Insurers (AKI), Kenya Motor Repairers Association (Kemra), Motor Assessors Association of Kenya and the National Association of Kenya Investigators signed a memorandum of understanding on implementation of the reviewed standards in Nairobi.

AKI Executive Director Tom Gichuhi explained that the new arrangement would assist to structure service charges and timelines. "The Standards and Benchmarks were first implemented in 2009 following a series of meetings between insurers lobby group and the various stakeholders in the motor industry. The review of the standards is in line with inflation in the economy and new realities in the motor industry and will benefit insurers, insured and the service providers," he said.

He observed that collaboration by value chain players will contribute to eradicating malpractices mainly fraud in the industry.

Kemra Chairman Bernard Ngore said vehicle repairers have been struggling to do their business because they are not paid on time by the insurance companies.

"Some members are grappling with huge financial deficits which insurance firms have delayed settling despite existence of strong provisions like settlement of invoices in 30 days in the past MoUs," he said.

Ngore said commitment by all service providers will herald new dawn in claims payment and thus help deepen insurance penetration.