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{
    "id": 699668,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/699668/?format=api",
    "text_counter": 93,
    "type": "speech",
    "speaker_name": "Hon. A.B. Duale",
    "speaker_title": "",
    "speaker": {
        "id": 15,
        "legal_name": "Aden Bare Duale",
        "slug": "aden-duale"
    },
    "content": "The method of valuing the liability of an insurance company is well discussed in this Bill. How do you value the liability of an insurance company? Do you use the net premium valuation method, which is now found in law, or do you look at other parameters when undertaking a premium valuation? Currently, the only method provided in the Act for valuing the liabilities of an insurance company is the net premium valuation method. This Bill wants to introduce the use of other valuation methods as maybe prescribed by the Authority. The Bill is opening up this area to ensure that an insurance company can use other valuation methods to determine its assets, liabilities, credit rating and market share. Why do we give power to the Authority? Because the Authority will help in ensuring that we have a market consistency approach in terms of valuing the liabilities of insurance companies as required under the risk-based capital model. Under the current Act, payment of a claim and acceptance or denial of liability is required to be made within 90 days after notification of a claim by a claimant. This Bill proposes to reduce that period to 30 days. This is very important. When many Kenyans make claims to insurance companies, it takes ages for those claims to be settled. The law provides that claims should be settled within 90 days. For the benefit of poor Kenyans living in the rural areas, this Bill seeks to reduce this period to 30 days. If we pass this Bill as it is, an insurance company will be under obligation by law to pay a claimant within 30 days, which is very good. This will facilitate expeditious payment of claims by insurance companies and ensure that customers do not endure delays before receiving their compensation. Kenyans wait for years and years. With due respect to my legal colleagues who are from the legal profession, let me say that sometimes a claimant’s money is sent to his lawyer, who ends up pocketing it. Such claimants become victims of wayward insurance companies and rogue law firms. God is great because I do not own a law firm. I am not a lawyer and neither do I intend to be one. Some of them are not good. Hon. Speaker, this is a straightforward amendment seeking to address three or four issues of great importance to the insurance industry. It introduces an Islamic insurance product, which is important for Kenyan Muslims. It also seeks to reduce the period for settlement of claims from 90 days to 30 days. It is also important to the industry because it is widening the scope and methodology of deciding insolvency. Having said all this, I beg to move and ask Hon. Kajuju, who is an insurance law expert, to second. Hon. Cheboi would have confirmed that she passed that paper if he was present. I am sure that Hon. Kajuju passed because she is a very intelligent Member and a good former Vice- Chair to the Chair. I request her to second the Bill."
}