Lang’ata Member of Parliament Phelix ‘Jalang’o’ Odiwuor plans to introduce a new bill in Parliament, which, among other things, seeks to eliminate mandatory motor insurance. The proposed Motor Insurance Bill 2024 aims to hold insurance providers more accountable. The bill is expected to be tabled in February 2025.
According to Jalang’o, the current insurance system in Kenya faces multiple challenges. While many vehicle owners pay for insurance, they frequently do not receive adequate compensation after an accident. He criticized the behavior of insurance companies, stating that they employ claims officers who often work to prevent full payouts or burden claimants with excess fees.
Jalang’o also addressed the widespread use of third-party insurance, claiming it is the most common form of coverage among Kenyans. He warned that this cover is often insufficient, as it does not provide compensation for the vehicle owner in the event of an accident. Many Kenyans obtain insurance primarily to avoid arrest by the police, rather than to secure adequate compensation after an accident.
‘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…that is why most of the cars out here are on third-party insurance,’ Jalang’o stated. “Third-party doesn’t help in the event of an accident. It provides no coverage for the vehicle owner.”
The bill seeks to ensure insurance firms uphold their commitments to policyholders. It will require insurance companies to agree, in writing, to fully pay claims for comprehensive insurance holders in the event of an accident. The Bill proposes that policyholders with comprehensive insurance who do not file a claim during the policy year receive a refund of up to 50% of the premium paid.
Jalang’o says the bill aims to make insurance companies more competitive, ultimately improving services for consumers. He added, ‘It is a powerful Bill that will change how insurers deal with you when you have motor insurance…we want to make sure they start paying.’
