Nine insurers fined Sh17.6million for late payment of claims

Judges Gavel

The Insurance Regulatory Authority (IRA) has fined nine insurers Sh17.6 million for late payment of claims, failure to submit audited accounts and premium levy payment.

The nine are Invesco Insurance, Metropolitan, Kenindia, Kuscco, Kenya Alliance, Metropolitan Cannon, Takaful Insurance and Trident.

According to Insurance Act, failure for a company to pay within the set deadlines attract a five per cent penalty on the unpaid amount. “Where the amount of claim which is due remains unpaid on expiry of the period prescribed, or any extension thereof, a penalty equal to five percent of the unpaid amount shall forthwith become due and payable,” states the Act. Metropolitan Cannon was fined Sh1.3 million, Takaful Insurance; Sh330,000 and Trident Sh3 million for late audit submissions while Resolution was fined Sh3.2 million and Explico Insurance; Sh510,000 were fined for failure to pay the premium levy.


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