Jubilee dispels fears over Sh900 million cover

Jubilee Insurance has dispelled fears that a Sh900 million insurance cover for civil servants has been stopped over an ongoing police investigation.

Jubilee has clarified that there is a running contract with the National Hospital Insurance Fund (NHIF) that commenced on April 1st and delay of payments of premiums won’t hamper it.

Yesterday, The Standard reported that the cover had derailed after NHIF delayed to pay installments for premiums, following the investigation.

The police investigation targets NHIF.

Officers from the Directorate of Criminal Investigations (DCI) reportedly have carted away documents that include the signed contract, invoices and vouchers in a fresh probe.

However, Jubilee yesterday explained in a statement: “Even if NHIF is still processing the premiums, life cover is still on. The DCI raids at NHIF does not affect our relations with client."

NHIF board chair Hannah Muriithi had confirmed that detectives had taken documents but also allayed fears that the contract had been stopped to pave way for investigations.

“There has been an ongoing audit of our systems and the DCI has been conducting investigations on several issues. Thus the investigations are not specifically on this contract and there is no directive stopping any payments,” Ms. Muriithi said while directing us to management for details.

The consortium of Jubilee, Madison and Gemenia insurances got the award at Sh890, 455,966 on 12th of February after it emerged as the lowest evaluated bidder.

However, one of the losing consortia moved to the Public Procurement Administrative Review Board (PPARB) to contest the award of the lucrative contract.

However on March 19, PPARB upheld the decision to award the deal to a consortium of insurers led by Jubilee insurance paving way for contract signing.

And immediately after the insurers and NHIF signed the deal, police are said to have targeted the contract over allegations of irregularity in calculating premiums prompting delay in remittance of premium payments.

There were fears that over 150,000 workers at both national and county governments, 162,000 police officers and prison warders and 8,000 employees of parastatals and state agencies remain exposed following the inquiry.

On May 8th, Jubilee Insurance forwarded debit note of Sh455, 227,983 being the first installment for the group life and last expense insurance cover for over 320,000 civil servants. The total contract sum for NHIF/033/2018-2019 is Sh890, 455,966.

Beneficiaries include 150,000 workers at both national and county governments, 162,000 police officers and prison warders and 8,000 employees of parastatals and agencies, have now been left without cover after the current one expired on 31st December last year.

The cover ensures that if an employee were to die unexpectedly, his or her family copes financially by providing some income with last expense covering for funeral costs when a member dies, such as mortuary fees, coffin, and other associated expenses.

The tender NHIF/033/2018-2019 Group Life and Last Expense for Civil Servants in National & County Governments and other Institutions and Last Expense for the National Police Service was advertised on 11th December 2018.

In the civil servants scheme, officers in job group A-G will be entitled a Sh700, 000 for group life and Sh100, 000 last expense while the senior most at job grade (undersecretaries) will benefit with a Sh30.8 million for group life and Sh300, 000 for last expense.

National Police members are only entitled for last respect with all cadre getting a uniform of Sh250, 000 for last respect.

In parastatals and other institutions, the lowest cadre of workers are entitled to Sh850, 000 for group life and a further Sh120, 000 as last respect while the senior most cadre staff will benefit with a Sh5, 000,000 for group life and Sh300, 000 for last respect.