Lang’ata MP Phelix Odiwuor, popularly known as Jalang’o, has announced plans to introduce a new Bill in Parliament aimed at reforming Kenya’s motor vehicle insurance industry.
The Motor Insurance Bill 2024 seeks to tackle long-standing issues, including compulsory insurance and poor compensation for policyholders.
Jalang’o’s Bill proposes scrapping mandatory vehicle insurance, arguing that most Kenyans only buy insurance to avoid being arrested, not because they need it.
“Most Kenyans take insurance covers for their vehicles, not because they need them, but because they don’t want to be arrested,” he said.
The MP also pointed out the widespread dissatisfaction with how insurance companies handle claims.
“If you walk into insurance companies’ banking halls, you will find thousands of Kenyans following up on compensations that the insurance companies have refused to pay on a fully insured vehicle,” Jalang’o said.
He believes many insurers exploit loopholes to avoid paying claims, leaving policyholders under-compensated.
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To address these concerns, the proposed Bill would require insurance companies to fully honour claims and provide adequate compensation for covered vehicles. The MP has also suggested that policyholders who do not file claims during the year should receive a 50% rebate on their premiums.
“People pay insurance of up to Sh500,000 per year, but where does this money go? Insurance companies go and invest it,” he explained.
Jalang’o also took issues with the popular third-party insurance, claiming it offers minimal protection in the event of an accident.
“Third-party is just a sticker that cannot help you if you had an accident; they will not pay you anything from a third party,” he said, adding that 90% of Kenyans rely on this inadequate form of cover.
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