Insure against terrorism
The Insurance Regulatory Authority (IRA) is encouraging insurers to cover losses arising from terrorism attacks.
According to IRA Legal Affairs Manager Nkirote Mworia, terror attacks are a reality that insurance firms should adopt on policies. “The reality of terrorism cover came to the fore after the recent Westgate Mall attack that led to loss of lives and property running into billions of shillings.”
She says that insurers should openly disclose full policies to clients arguing that majority of policy holders with property investments are unaware that their covers do not include terrorism acts. Insurers should also inform policy holders whether they would be required to pay extra premium to be covered against terrorism acts.
“It would be proper if insurers also embrace policies that would see clients benefit from ex gratia payments following losses out of terror attacks,” Ms. Mworia said.
She proposes that policy holders who want to insure against terror may also be requested to subscribe to additional covers.
The Insurance penetration in Kenya stands at 3.2 per cent of the country’s Gross Domestic Product (GDP), largely attributed to services associated with the middle and upper class.
Email your news TIPS to Editor@nairobilawmonthly.com, and to advertise with us, call +254715061658 anytime of the day
