Public transport sector operators have filed a complaint to the government demanding insurance reforms arguing that the current measures are unfair.
Addressing the press on Thursday noon, the Chief Executive Officer (CEO) of the Federation of Transport Operators in Kenya Gushen Muchiri noted that some insurance companies were taking too long to pay insurance claims.
Muchiri, who spoke moments after a stakeholder meeting in Narok County, demanded an immediate restructuring of the insurance sector through an act of Parliament to ensure efficiency and fairness.
While expressing frustrations over unjust regulations, Muchiri revealed that the transport sector’s troubles had been deepened by unstructured insurance claims by some matatu owners.
The Insurance Regulatory Authority signage.
Photo
IRA
“Why should I personally pay for a liability yet I have insurance cover? What is the purpose of an insurance cover if I have to go through court?” Muchriri questioned.
“This is a demand, the government should come out and tell us to stop acquiring insurance covers so that in case of a problem, we can deal with them by ourselves.”
His sentiments were echoed by another matatu operator who accused insurance companies of allegedly giving them false promises while applying for the covers.
According to the matatu operator, in most cases, drivers were forced to cover the whole liability incurred despite having insurance cover for their vehicles.
“As matatu operators, we have been wondering why we are caught but during the process of acquiring an insurance cover they promise to cover the liability, we demand that the government put strict measures on insurance companies,” lamented the motorist.
It is not the first time the matatu operators have come out to lament over poor insurance regulations, in August last year, the operators announced a nationwide protest against what they described as exploitation by insurance companies.
According to the motorists, delays, and denials in claim settlements by some insurance companies resulted in the auction of their vehicles by auctioneers.
In their demand letter, the motorists also expressed frustrations over the government’s decision to hike the fuel levy from ksh18 to Ksh25 despite there having been public participation and the people rejecting the levy.
Matatus heading to Nairobi CBD during traffic along Ngara
Photo
Jalang’o