There are several laws that protect all insurance consumers in Kenya. This laws ensure that the customer is protected and his/her rights are protected. Insurance customers are the most protected customers in Kenya. Some of the laws that exist are
The Constitution of Kenya
- Article 46 talks about the consumer rights.
- Article35 details everything one needs to know about his/her right Ito information
- Article 47 gives the customer a fair administrative procedure
- Article 22 touches on enforcement of bill of rights
Consumer protection
- Section 3 (4) on purpose of the Act:
- Promoting fair and ethical business practices
- Protecting consumers from improper trade practices
- Improving consumer awareness and informed consumer choices and behavior
- Promoting consumer confidence and empowerment
The Insurance act
- The provisions run through the Act including:
- Section 3 talks about mandate
- Section 5 has details on contracts
- Section 74 & 75 touches on rates
- Section 76 talks about right to pay
- Section 77 touches on default of payments
- Section 80 is on policy documents
- Section 87 talks about the cooling off period
- Section 114 is on Terms and actions expected
- Section 120 is on winding up
- Section 156 talks about premiums
- Section 164 is on adverts
- Section 179 outlines details about the Policy compensation fund(PCF)
- Section 196A is on register
- Section 203 touches on claims
Competition
- One of the objectives of the Act is to protect consumers from unfair and misleading market conduct.
- Creates the following offences
- False and misleading representations
- Unconscionable conduct in business practices
Other key legal frameworks that exist
- Treating customers fairly principles
- Unclaimed assets Act
- The proceeds of crime and Anti-money laundering Act
- IRA prudential guidelines
- Corporate Governance Guidelines
- RBA Guidance for Life Insurance Sector
- Guidelines on Reinsurance Issued in February 2013
- Insurance Market Conduct for Intermediaries
- IRA Anti-Money Laundering Guidelines
