The Insurance Regulatory Authority (IRA) is Government institution responsible for the regulation of the insurance industry in Kenya. IRA does not, therefore, sell insurance products.
Insurance is a mechanism through which persons transfer risk(s) to insurance companies at a fee called premium. The insurance companies in return promise to pay for the insured loss should it occur.
Yes. Under life insurance policy this action must be taken within the first thirty days after receiving the policy document. In case you cancel the policy within the thirty days, you will be refunded the whole premium paid less withholding tax. . Regarding general insurance business, cancellation of the policy will lead to a prorata refund of the premiums so far paid.
Failure to pay insurance premiums as stipulated in the policy amounts to breach of policy terms and conditions and leads to the termination of the contract.
If you have a life insurance policy and the insurance company is closed down, your policy remains valid and you should continue paying policy premiums throughout the remaining term of the policy. Failure to continue paying premiums leads to termination of the policy by the insurance company. You have the right to claim under the policy immediately the policy matures.
You will need to report any loss or damage to the insurance company in time and ensure that you submit all the necessary documents requested by your insurance company. You are required to co-operate with the insurance company to facilitate the smooth handling of the claim.
In the event of a dispute between you and your insurance company, you can contact IRA through the contacts below.
No. Insurance contracts are guided by principle of indemnity which requires that the policyholder should be taken back to the financial position they were immediately before the loss occurred. Insuring the same property e.g. a house with more than one insurer so as to be paid twice should the insured loss occur amounts to gaining unduly from the contract.
Yes. You can insure your life with more than one insurer. This is because life cannot be valued.
No. motor Insurance policies are not transferable because they are personal in nature.
Only employees who are subject to PAYE tax can claim the 15% Insurance Premium Tax Relief. The tax-paying life policyholder should obtain an annual insurance premium contribution certificate from the insurer and submit a copy of the same to the employer. The certificate should be accompanied with a letter from the policyholder seeking for the relief. The employer is expected to effect the relief through the payroll by submitting the premium to the insurer net of the 15% relief.
For premiums already paid to the insurer without deducting the relief, employees are requested to write to KRA seeking the refund. For self-employed individuals, request for the 15% Insurance Premium Relief is made through the annual tax returns through submitting the annual premium contribution certificate to KRA who will then compute the refund.
No. As the name suggests, Motor Vehicle Comprehensive policy only protects damage or loss to the motor vehicle and any claim made by the third parties. As such the policy does not pay any claim for loss or damage made by the policyholder. Policyholders are therefore advised to buy separate insurance to protect them against losses arising from the use of the vehicle.
No. Motor Third Party Risks cover is compulsory in Kenya. Driving without this insurance is illegal in Kenya.
Leave a Comment