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{
    "id": 1337203,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1337203/?format=api",
    "text_counter": 130,
    "type": "speech",
    "speaker_name": "Kikuyu, UDA",
    "speaker_title": "Hon. Kimani Ichung’wah",
    "speaker": null,
    "content": "This is a very short Bill with five clauses, some of which are clean-ups of the Insurance Act. The first one is on Section 40 of the Insurance Act, which is being amended to delete a proviso in sub-section (1) that had created some conflict in the law. Section 32 of the Act provides for a minimum of 5 per cent or Ksh5 million to be held by insurance companies with the Central Bank of Kenya (CBK). Section 40(1) of the Act that we are deleting provides for Ksh3 million. The Bill is proposing to delete that section to have clarity that you now hold Ksh5 million or at least 5 per cent of the total assets of an insurance company. This gives assurance to members of the public who are insured by insurance companies that, at least, there is some money that is being held by the insurance companies as a percentage of their total assets with the CBK. When you invest in an insurance company as an insured person or insurance investment product, you are certain, just like in the banking sector, that there are deposits held by the insurance company with the CBK to compensate you, should there be a problem with the way it is run. Secondly, Clause 3 of the Bill amends the Insurance Act by inserting new Section 67H, which is basically creating penalties. New Section 67H (1) says: “Any shareholder, director, principal officer or management staff of an insurer who— (a) Fails to take all reasonable steps to secure the compliance of a registered or licensed person with this Act; (b) Fails to take any reasonable steps to secure the accuracy and correctness of any statement or report submitted under this Act or any other applicable written law; commits an offence under this Act.”"
}