Matatu operators have called on Insurance Regulatory Authority (IRA) to put in place stringent measures to protect their businesses from collapsing due to insolvency of insurance firms.
Motorists have lamented that some insurance firms continue to collect premiums from unsuspecting clients even when they are facing liquidity crises, eventually resulting in heavy losses to the businesses.
IRA Deputy Director Conduct supervision and Consumer Protection Trizah Mburu speaking in Nanyuki during a sensitization workshop dubbed Bima Mashinani said they aim to educate the public on the benefits that come with insurance covers.
‘’This is an activity that we go to in various counties, engaging stakeholders in pursuit to regulate , supervise and promote the development of the insurance industry,” she Ms Mburu .
It comes in the wake of three insurance firms being placed under statutory management after being found to be insolvent last week; IRA placed Trident Insurance Company, KUSCO Mutual Insurance Limited and Corporate Insurance Company under the Caretaker of Policyholders Compensation Fund (PCF).
IRA has assured clients after the collapse that they would get compensation through the PCF procedures.
’’We take the interest of policy holders, claimants and any other insurance beneficiaries to consideration. There is a specific department that deals with consumer protection to make sure any challenges a policy holder or a beneficiary experience’s when it comes to matters of settlement claims are handled effectively,” she said.
At the same time, the motorists were sensitized on road safety.
By Muturi Mwangi
