MPs Grill Insurance Regulator Over Failure to Protect Motorists » Capital News

NAIROBI, Kenya Apr 18 – The Insurance Regulatory Authority (IRA) has come under sharp scrutiny from lawmakers for allegedly failing to safeguard the interests of public transport operators facing persistent frustrations with unresponsive insurance providers.

This emerged during a sitting of the National Assembly’s Public Petitions Committee, chaired by Vihiga MP Kavai Kagesi, which met to consider a petition tabled by Machakos MP Hon. Caleb Mule on behalf of the Machakos Matatu Owners Association (MAMOA).

The petition raises alarm over the conduct of INVESCO, AMACO and Directline which are accused of routinely declining to honor valid insurance claims submitted by matatu operators.

According to Hon. Mule, matatu owners have faithfully met their obligations, including prompt and full payment of premiums. However, when accidents occur, the insurance firms allegedly fail to provide compensation or legal representation, leaving operators exposed to hefty court judgments and financial ruin.

“Some of these companies are issuing third-party insurance covers at rock-bottom prices ,I as low as Ksh 2,000 a year  with no intention of settling claims when accidents happen,” said Mule.

He further warned that the situation has left around 4,000 public service vehicles in the Lower Eastern region entangled in unresolved court cases, exacerbated by the insurers’ refusal to provide legal assistance.

CEO of the Federation of Public Transport Sector, Kushian Muchiri, accompanied MP  Mule and echoed the concerns, accusing the IRA of turning a blind eye to the growing crisis.

“We are here because the laws governing this sector are being ignored. Matatu owners are being extorted through fraudulent practices while the regulator stands by silently,” he said.

The petitioner is calling for immediate intervention to compel the three insurance firms to settle all outstanding legitimate claims and for the IRA to enforce stricter regulations and standards of conduct within the insurance sector.

“Our public transport system is the heartbeat of our economy. We cannot continue allowing rogue insurers to exploit hardworking Kenyans,” Mule stated.

In response, Committee Chair Kagesi assured that the matter would be handled with the seriousness it deserves with full investigation done over the concerns.

“This is a grave issue affecting thousands of livelihoods. The committee will summon the IRA and the named insurers to respond to the allegations and provide clear explanations,” he said.

The committee is expected to initiate investigations and invite all concerned parties before preparing a report to be presented to the National Assembly.