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{
"id": 234805,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/234805/?format=api",
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"type": "speech",
"speaker_name": "Ms. Karua",
"speaker_title": "The Minister for Justice and Constitutional Affairs",
"speaker": {
"id": 166,
"legal_name": "Martha Wangari Karua",
"slug": "martha-karua"
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"content": " Thank you, Mr. Temporary Deputy Speaker, Sir. I rise to second this Bill. I want to commend the Ministry for bringing forward this Bill which seeks to amend the Insurance Act. The measures proposed in this Bill are long over-due. We all know the chaos that have attended the insurance industry in this country, causing suffering to many insured people and innocent parties when their claims are not met. It is, therefore, of utmost importance that in order to protect the public and motorists, we debate and pass this Bill whose object is to strengthen and regulate the insurance industry. As has been ably demonstrated by the Minister, this Bill seeks to create an independent Insurance Regulatory Authority. This is the way forward. The IRA will take over some of the powers exercised by the Ministry and the Minister. The IRA will not only consist of people in Government, but also those in the insurance sector and members of the public, so that together they may exercise regulatory and supervisory powers over the industry. This is a step in the right direction. It not only offers closer supervision, so as to stop matters before they degenerate, but it also offers the public a window of opportunity to participate in the governance of the insurance industry. Mr. Temporary Deputy Speaker, Sir, it is also known that in the past we have had many cases of agencies collecting insurance premiums and not handing them over to the insurers. This has created a problem when the insured seeks to benefit under the policy. Later on, they discover 3616 PARLIAMENTARY DEBATES November 14, 2006 that the policy is not in force because certain things have not been done. This Bill seeks to ensure that, through the close supervision of the regulator, all these problems affecting the industry are eliminated. Mr. Temporary Deputy Speaker, Sir, I have looked at the objects and functions of the IRA. I am glad that it is stated clearly that they will ensure the effective administration, supervision, regulation and control of insurance and re-insurance businesses in this country. They will also formulate and enforce standards for the conduct of insurance and re-insurance businesses. Currently, the problems besetting the insurance industry are as a result of lack of standards and enforcement. It is, therefore, imperative and in our interest as the consumers of the insurance services and in the interest of our constituents that we support this Bill. Mr. Temporary Deputy Speaker, Sir, all matters, including those of licensing, ensuring that the interests of policy holders and beneficiaries are protected, promoting development of the sector and ensuring that the sector does not suffer near collapse like it has done many times in the past, have been addressed in this Bill. We have had many insurance companies going under. Perhaps if we had a regulatory authority, that eventuality and the suffering of many people, would have been prevented. It is, therefore, imperative that we address these issues and this time ensure that we have a strong insurance industry where the interests of the investor and the beneficiaries are fully looked into. Mr. Temporary Deputy Speaker, Sir, I have looked at this Bill and I am happy with the proposals that are contained in it. I want to fully support it, but leave room that in the course of contributions, hon. Members will be at liberty to strengthen this proposed law that will guide our insurance industry. Mr. Temporary Deputy Speaker, Sir, with those very few remarks, I beg to second."
}