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{
    "id": 1337206,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1337206/?format=api",
    "text_counter": 133,
    "type": "speech",
    "speaker_name": "Kikuyu, UDA",
    "speaker_title": "Hon. Kimani Ichung’wah",
    "speaker": null,
    "content": "I pointed it out because I just had an engagement with the Chairman of the Departmental Committee on Finance and National Planning who considered this Bill. During the Committee of the whole House, we may need to amend the words, “any shareholder,” to remove the word, “shareholder.” A shareholder may not necessarily be culpable in the running of any company. There are insurance companies that are already listed with our Nairobi Securities Exchange (NSE). Many Kenyans are shareholders holding insignificant shareholding in a company. They are not necessarily involved in the day-to-day running and management of the insurance company. If it fails on any of the issues that are listed here, either to make correct statements or take reasonable steps to secure compliance with the insurance Act, a shareholder who has shares and is not involved in the day-to-day running of the company may be found liable and be imprisoned or fined Ksh5 million, yet he has nothing to do with it. We have agreed with the Chairman of the Committee that during the Committee of the whole House, that is one of the areas that we will amend to remove the term “any shareholder” and leave it as “any director, principal officer or management staff of an insurer.” These are people charged with the responsibility of managing the insurance companies. If they fail to comply with the Insurance Act, then they are liable to an offence. If they make false statements or reports to the Insurance Regulatory Authority (IRA), then it should be the director, principal officer or management staff of the insurance company who will be held liable. If they fail, without any justification, to settle a judgement or any claim under the insurance Act, they will be held liable. It is important for these penalties and deterrent measures to be there in law. As it stands today, insurers with their management and staff punish many Kenyans. You pay premiums but when you get into an accident or incur a loss, the insurance company does not compensate you, knowing nothing will happen to them under the Act. Part of the measures that are being put under new Clause 67H is to ensure that if an insurer fails to settle a claim or judgement in court, without any lawful justification, then he will have committed an offence and be subjected to the penalties and fines that are stipulated."
}