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{
    "id": 699671,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/699671/?format=api",
    "text_counter": 96,
    "type": "speech",
    "speaker_name": "Hon. (Ms.) Kajuju",
    "speaker_title": "",
    "speaker": {
        "id": 840,
        "legal_name": "Florence Kajuju",
        "slug": "florence-kajuju"
    },
    "content": "This means each and every area - be it of the practice or service industry - must be included in terms of the provisions that are there. Takaful insurance will take care of the area that was left out in the current insurance law as it stands. Basically, this is the industry that covers the Islamic concept and represents solidarity and mutual assistance on group participation. It guarantees members against any defined loss or damage. Hon. Speaker, the beauty of Takaful insurance is that it will ensure that all members who are covered under it do not suffer personal damage. This is because the risk would be distributed to all the members. It is like guaranteeing each other in the event of such an eventuality. The Bill seeks to give the Cabinet Secretary powers to make regulations that will determine the licencing and supervision of Takaful insurance business. This, therefore, means that the regulations will ensure that the licensed persons are proper people who have the capacity or locus standi to ensure that they manage this business. This does not only stop at licensing because it also ensures that there is constant supervision of the persons who have been licensed to ensure that they carry out their mandate as per the established law. These amendments are also important because they set a level playing field to all persons who take an insurance cover and, therefore, all the actors within the insurance industry are covered. Hon. Speaker, it is also important to look at Clause 5 of the Bill. It talks about the 100 per cent capital adequacy ratio that is supposed to be kept by persons who have insurance companies. This is something that is important especially to persons who have suffered injuries as a result of accidents and those who have lost their loved ones in fatal accidents. As practitioners, we had issues with accident claims. Insurance companies would cover motor vehicles on the road, but no sooner had accidents occurred than the insurance companies - if they are major accidents - declined to cover them or compensate the victims of such accidents. I am aware of very many insurance companies that have gone into liquidation and they have been put under statutory management for as long as I can remember. I have in mind cases of United Insurance Company, Blue Shield Insurance Company, Invesco and many others. As they go into liquidation, the victims who are supposed to be compensated as a result of accidents are never compensated. This is the case and yet the insurance company has received money from the insured. Therefore, Clause 5 will ensure that there are sufficient funds to cover victims of accidents in the event of one so that our citizens do not suffer and yet the drivers have taken a cover with an insurance company. Hon. Speaker, it is also important to note that in the amendments there is a clause that provides for the timeline within which a claim should be paid. Currently, if you are involved in an accident, the process takes ages. Most victims of accidents have suffered. They have spent all their money paying hospital bills and yet the insurance company does not compensate them at the end of the day. So, these amendments are very important. The amendment Bill states that the maximum period within which an insurance company can take to settle claims will be reduced from 90 days to 30 days. So, this is a very important clause because it will ensure that insurance companies compensate the claimants within a set out time. Therefore, this is a wakeup call to the insurance industry to know that time has come to expand the industry by way of Takaful insurance business to ensure that those who intend to participate in the insurance industry have enough capital to take care of claims that may arise in the course of the cover. It will also ensure that the period within which they are supposed to The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}