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{
    "id": 699677,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/699677/?format=api",
    "text_counter": 102,
    "type": "speech",
    "speaker_name": "Hon. Gichigi",
    "speaker_title": "",
    "speaker": {
        "id": 1909,
        "legal_name": "Samuel Kamunye Gichigi",
        "slug": "samuel-kamunye-gichigi"
    },
    "content": "Thank you, Hon. Speaker. I also rise to support this Bill. All forms of insurance are Takaful in the sense that it is many who pay subscription and contributions so that when one of them is exposed to losses, the claim is paid from the monies that have been paid by others. It is not a very big departure from the ordinary insurance. The only exciting bit is that these are people who, instead of being organised by giving money to a different person, can come together to pool their resources and when one of them is in trouble, they bail him out. I only hope that the IRA will come up with a proper framework in terms of regulations to ensure that all the people who undertake to take care of their brothers and sisters do so. This is a good Bill. The business of insurance companies failing to pay claims which are not even contested and dilly-dallying with the money will end. By reducing the period from 90 days to 30 days, it is going to be of much benefit to the claimants and the economy. Instead of the money remaining with insurance companies, a person who makes a claim will receive it sooner. That way the claim will be made quickly and in turn the economy will benefit. There are a number of provisions here which are expanding the mandate of the IRA to regulate the industry. The insurance sector has suffered in the past. It is littered with very many graves of companies that went under merely because of lack of proper corporate governance and integrity. Some people would just come up with an insurance company merely to collect money and once they had gathered enough like in the pyramid schemes, they would simply ferry out the money and the company would collapse. Many claimants would then be left without any recourse. So, if we give more teeth to the IRA, it will be for the benefit of the insurance company and the claimants. Hon. Speaker, I am also happy that the proposed law is enhancing capital so that insurance companies do not operate while they are insolvent. There is a provision that claims will take priority over shareholders’ capital whenever the company goes under. This is a good provision. The money that is in an insurance company properly belongs to the insurers. If the people who are running that business after raising some capital are mismanaging it or losses occur, such loses should not be visited on the claimants. The first person to suffer ought to be the person managing that business because the claimants have no say in the operations of that business. This is a good law. I support it and urge my colleagues to do so. Thank you, Hon. Speaker."
}