Nine Insurers Fined For Delaying Claims Payments

The Insurance Regulatory Authority (IRA) has fined nine insurers Ksh17.6 million for late payment of claims, failure to submit audited accounts and premium levy payment.

AT least four companies of those fined were repeat offenders of failing to pay claims or delaying the payments.

Invesco Insurance was the biggest casualty having been fined Ksh7.9 million for delayed claims payment, while Metropolitan Insurance was fined Ksh1.3 million.

Kenindia Assurance was fined Ksh1 million, Kuscco Ksh161,739 and Kenya Alliance Ksh51,547.

IRA also fined three underwriters for failure to submit audit reports in time. Those that were fined include Metropolitan Cánnon (Ksh1.3 million), Takaful Insurance (Ksh330,000) and Trident (Ksh3 million).

Resolution Insurance was fined Ksh3.2 million for failure to pay premium levy alongside Explico Insurance (Ksh510,000).

The law requires underwriters to admit or deny liability, determine amount, identify the claimant and pay within 90 days.

The late payment of claims has seen several service providers such as hospitals shun some underwriters.

One such case entails Resolution Insurance, whose clients have been denied services in some hospitals such as the Nairobi Hospital, after failing to clear bills (amounting to Ksh9 million).

The insurer, according to acting managing director Bernard Githinji, requires at least a Ksh2 billion capital injection from shareholders to stay afloat.

As a result, Resolution was among the insurers with the most complaints (30), alongside Xplico with 43 client complaints and Trident (25) out of the 459 insurance complaints filed at the regulator.

The Competition Authority of Kenya (CAK) recently forced Trident, Kenya Orient and Invesco to pay Ksh5.5 million to 16 motor vehicle garages for delays after fixing their clients’ cars. Kenya Orient Insurance paid Ksh1.2 million, Invesco Ksh2.3 million and Trident Ksh2 million.

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