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{
    "id": 1337278,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1337278/?format=api",
    "text_counter": 205,
    "type": "speech",
    "speaker_name": "Tigania West, UDA",
    "speaker_title": "Hon. (Dr) John K. Mutunga",
    "speaker": null,
    "content": " Thank you, Hon. Temporary Speaker, for the opportunity to also support the Insurance (Amendment) Bill (National Assembly Bill No.18 of 2023). I commend the Committee and the sponsor for the good work and for bringing these amendments to this Act. These amendments will create accountability in insurance companies, which is key. They also try to introduce observance of fiduciary responsibility by insurance companies. If there is no accountability or prudent management of resources, then insurance companies will not be trusted, thereby losing business. Insurance is a huge business in this country which many people rely on for survival. Insurance has been used in very many respects, including to support people in getting contracts today, especially in cases where you are required to put in a bond. Therefore, being responsible institutions and improving their credibility is key. This amendment introduces that dimension. Amending the Insurance Act to provide for offences and penalties is also important. We realise that the functionality, efficiency and effectiveness of institutions will basically depend on who is sitting on the seat at that moment. It depends on the driver, who in this particular case is the manager. Careless handling will lead to laxity and collapse of these institutions. If there are no penalties, then we observe a lot of laxity and carelessness. If penalties are not strict or stringent, there is impunity and people do not get the services that they pay for. These amendments are key in bringing in this dimension into the Insurance Act. A deliberate definition of offences relating to the management of insurance companies, as introduced in the amendment to Section 67(h), is key. If management is prudent, then we have institutions that can be relied upon. Requisite penalties to managers for failures are important. Insurance companies that have failed or run out of business have resulted in huge undesirable losses to Kenyans. It is important, therefore, not only to improve accountability of servants of the fiduciary responsibility but also to encourage professionalism within insurance companies, which is what these amendments seek to do. Specifically introducing marginal notes to distinguish between general surveyors and insurance surveyors is important. One can argue that insurance surveyors were not involved and therefore they were not responsible. The Bill also strives to introduce better credence to the insurance industry. We need credible insurance companies for various reasons. Under the difficult economic times we are in right now, people rely a lot more on insurance companies. We realise that without credibility, we are not able to run insurance firms as they should. Insurance companies also cover most Kenyans who are not necessarily in the know of what happens. If you look at the documents of the insurance companies, they have big, medium and very small fonts. The small fonts define a lot of serious issues, but most people do not take time to read them. It is important to have provisions in the law that will protect our people. Additionally, education levels of our people are different and not all of them are able to understand everything. I am looking at a case where we have introduced insurance for crops, livestock and transport systems. Most of the people who are engaged in these sectors do not really know how to interpret things. It is, therefore, important for us to curb likely mischief by insurance companies by introducing credibility in their activities and penalties that touch on the individuals who manage insurance companies. They should ensure that they adhere to fiduciary responsibility of paying the people at the right time whenever they request for their payments. They also have a responsibility to proactively deal with the issues and finish them off and to adhere to contracts. Penalties will give us the answer. With those very few remarks, I support the amendments. Thank you very much."
}