Jalang’o’s Bold Move to Reform Kenya’s Motor Insurance!

Lang’ata MP Phelix Odiwuor, popularly known as Jalang’o, has announced plans to introduce a groundbreaking bill in Parliament aimed at reforming the current motor insurance system in Kenya. The Motor Insurance Bill 2024 seeks to address long-standing issues related to compulsory vehicle insurance, which many believe has failed to protect policyholders adequately.

This article explores the key provisions of the proposed bill, the rationale behind it, and its potential impact on vehicle owners across the nation.

Background

The current state of motor insurance in Kenya mandates that all vehicle owners obtain insurance coverage, primarily third-party insurance. This requirement is intended to protect victims of road accidents but often leaves vehicle owners feeling vulnerable and inadequately covered. Many Kenyans purchase insurance not for genuine protection but merely to avoid police arrest, leading to a culture where compliance is prioritized over actual coverage.

Common Issues with Compulsory Insurance

• Inadequate Coverage: Most vehicle owners opt for third-party insurance, which provides minimal protection and does not cover damages to their vehicles.
• Claims Processing Delays: Policyholders frequently encounter significant delays when attempting to claim compensation after accidents. Many are left waiting for extended periods without receiving adequate payouts.
• High Excess Fees: Insurance companies often impose high excess fees, which can deter policyholders from claiming what they are entitled to.

Jalang’o’s proposed bill aims to tackle these issues head-on by removing the compulsory nature of motor insurance and compelling insurers to take their responsibilities seriously.

Key Provisions of the Proposed Bill

1. Removal of Compulsory Insurance

One of the most significant changes proposed in the Motor Insurance Bill 2024 is the removal of compulsory motor vehicle insurance. Jalang’o argues that this shift will force insurance companies to improve their services and honor claims more reliably. By making insurance voluntary, he believes that insurers will be compelled to treat motor vehicle insurance as a serious policy rather than a mere requirement.

2. Focus on Claims Processing

The bill highlights critical issues with the current claims processing system. Jalang’o has criticized claims officers employed by insurance companies, stating that they often work against policyholders by delaying payments or imposing excessive fees. He emphasizes that many individuals line up at insurance offices seeking compensation after accidents, only to be met with obstacles that prevent them from receiving their rightful payouts.

3. Third-Party Insurance Concerns

Jalang’o has raised concerns about the prevalence of third-party insurance among Kenyan motorists. He points out that this type of coverage is often inadequate, leaving vehicle owners unprotected in the event of an accident. According to him, many Kenyans purchase third-party policies solely to avoid arrest by law enforcement rather than for genuine protection.

“Kenyans do not take insurance because they want their vehicles insured; they take insurance to make sure that they are not arrested by the police,” stated Jalang’o in a recent video message.

4. Provisions for Comprehensive Coverage

The proposed bill includes provisions requiring insurance companies to provide written agreements committing to fully pay claims for comprehensive insurance holders in case of an accident. This change aims to enhance accountability and trust between insurers and policyholders, ensuring that those who invest in comprehensive coverage receive the protection they expect.

5. Premium Refunds

Another notable aspect of Jalang’o’s bill is the proposal for premium refunds for comprehensive insurance holders who do not make any claims during a policy year. If passed, this provision would entitle policyholders to receive up to 50% of their premium back if they remain claim-free throughout the year. This initiative seeks to incentivize responsible driving and reduce financial burdens on policyholders.

6. Encouraging Competition Among Insurers

By making motor insurance voluntary, Jalang’o believes that competition among insurers will increase significantly. With fewer mandatory clients relying on basic coverage just to avoid legal repercussions, insurers will need to enhance their offerings and customer service to attract clients genuinely seeking comprehensive protection.

“This bill will now make insurance companies very competitive because they will start paying; they will start advertising and saying we will insure you fully,” said Jalang’o.

Public Response and Feedback

As part of his initiative, Jalang’o has called on Kenyans to provide feedback on the proposed bill based on their personal experiences with motor insurance companies. He believes that incorporating public input is crucial for identifying loopholes that unscrupulous insurers exploit and ensuring that the legislation effectively addresses existing challenges.

“We want Kenyans to give views on the Bill based on their personal experiences with insurance companies,” he emphasized.

Conclusion

Jalang’o’s proposed Motor Insurance Bill 2024 represents a significant shift in how motor vehicle insurance could operate in Kenya. By removing compulsory requirements and compelling insurers to honor their commitments, this legislation aims to create a more equitable system for vehicle owners while enhancing accountability within the industry.

As discussions around this bill unfold in Parliament come February 2025, it is essential for stakeholders—policyholders, insurers, and lawmakers—to engage in constructive dialogue about how best to reform motor insurance in Kenya. The success of this initiative could lead to improved service delivery from insurers and better protections for Kenyan motorists