The revelation that Kenyans paid Sh43 billion for non-existent insurance is as shocking as it unfortunate.
Although the matter is already being argued out in court, whatever the outcome, the problems need to be fixed because unless it is resolved and premiums remitted to the insurance firms, businesses and households will remain exposed to risk of incurring huge losses.
The Insurance Regulatory Authority has told a court that brokers collected billions of shillings from customers, but failed to remit the money to insurance companies as required.
To say the very least, the agent’s failure to meet their statutory obligations is immoral and puts the properties and investments worth billions at risk, not to mention the fiscal challenges that they expose insurance companies to.
It is the responsibility of the agents to ensure that the premiums paid by clients are remitted on time. There is no reason why this is not happening already.
On their part, insurance should ensure that the commissions rightfully owed to agents are duly paid at all times to avoid situations where agents fail to remit money on account of debts accrued.
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Note: The results are not exact but very close to the actual.
