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{
    "id": 699702,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/699702/?format=api",
    "text_counter": 127,
    "type": "speech",
    "speaker_name": "Hon. Gaichuhie",
    "speaker_title": "",
    "speaker": {
        "id": 17,
        "legal_name": "Nelson Ributhi Gaichuhie",
        "slug": "nelson-gaichuhie"
    },
    "content": "Thank you, Hon. Speaker. Let me also add my voice to the Insurance (Amendment) Bill. First, I want to say that I support this amendment because, as you know, the insurance industry is dynamic and as it grows, we need to amend the laws so that they can suit the growth of the industry. The Takaful business is welcome because it is going to include quite a lot of members. It seems like it has been practised, but it was not legally authorised. So, this Bill is now trying to legalise the same and make sure that there is an authority that will take care of it and that the authority will be licensing the Takaful insurance and also regulate it. In the Finance Bill 2013, solvency was introduced in the insurance, but it has never been operationalised. If we pass the amendments, we will have a law that will regulate the solvency of the company. The 100 per cent adequacy ratio will help these insurance companies pay the claims. That is why we say that it will be impossible to pay the claims within 30 days without the 100 per cent adequacy ratio. That is why even with the 90 days, the insurance companies have not been able to pay because they do not maintain the 100 per cent solvency ratio. However, with the introduction of the 100 per cent financial adequacy ratio, they will be able to pay. Also, the additional investments that are being allowed for the insurance companies are a welcome move. You do not need to dilute the shareholding. You only need to have additional investments for the insurance companies. That will actually make the insurance companies stronger without diluting the management. The amendments that we are about to pass will make the insurance industry better and able to meet the claims. The only problem with insurance companies is once you have a claim and it is passed in court and everything has been tabled to the insurance companies, it is always very difficult to pay. If the timelines in law are implemented, people who have claims from the insurance companies will benefit. The provision for 30 days is supposed to be implemented, but it can only be implemented if we have the 100 per cent adequacy ratio. I know it has been something that the insurance companies have really contested because paying claims within 30 days is, sometimes, very difficult. This is because there are counter claims within the insurance industries. I hope we can come up with days that are agreeable to all insurance companies. I hope the Insurance Regulatory Authority will assist in knowing exactly how many days they require so that we can put it in law and make it effective. Otherwise, I support these amendments and say that we should support them because this industry is dynamic. With those very few remarks, I support the amendments. Thank you."
}