Legal Review: Insurances and the various forms

Insurance is a mechanism through which persons transfer risk(s) to insurance companies at a fee called premium. The insurance companies in return promise to pay for the insured loss should it occur.

The Insurance Regulatory Authority (IRA) is Government institution responsible for the regulation of the insurance industry in Kenya. IRA does not, therefore, sell insurance products.

There are two forms of insurance namely life (long term) and general (short term). Life insurance are contracts for more than one year while general insurance contracts are for one year or less.

Failure to pay insurance premiums as stipulated in the policy amounts to breach of policy terms and conditions and leads to the termination of the contract.

If you have a life insurance policy and the insurance company is closed down, your policy remains valid and you should continue paying policy premiums throughout the remaining term of the policy. Failure to continue paying premiums leads to termination of the policy by the insurance company. You have the right to claim under the policy immediately the policy matures

To make an insurance claim, You will need to report any loss or damage to the insurance company in time and ensure that you submit all the necessary documents requested by your insurance company. You are required to co-operate with the insurance company to facilitate the smooth handling of the claim.

In the event of a dispute between you and your insurance company you can contact IRA.

N/B- Motor Vehicle Comprehensive policy only protects damage or loss to the motor vehicle and any claim made by the third parties. As such the policy does not pay any claim for loss or damage made by the policyholder. Policyholders are therefore advised to buy separate insurance to protect them against losses arising from the use of the vehicle.

TO BE CONTINUED...