Insurance regulator to get tough on claims payment

The intention. The regulator wants to fasten the settlement of claims.

The Insurance Regulatory Authority, will beginning next year ensure prompt payment claims to restore confidence in the industry.

This, the regulator says, will be ensured through instituting tough penalties for those who fail to meet their obligation.

Speaking at a meeting to welcome Lion Assurance Company’s new managing director yesterday, Mr George Okotha, the IRA director operations, said prompt claims settlement will improve the industry’s image, create visibility and attract more business for players.

“We are going to be tougher as far as claims settlement is concerned next year and every player must comply with the set guidelines,” Mr Okotha said.
As part of the targets set in 2011 to streamline the insurance sector and better service provision, IRA set new time lines within which claims must be paid.

For instance, insurance firms are required to pay claims of up to Shs10 million within 10 working days after receipt of discharge voucher.

Claims of between Shs10 and Shs50 million are to be settled within 15 working days while those above Shs50 million should be paid within 20 working days after receipt of discharge voucher or upon receipt of cash call payment from reinsurers, whichever occurs first.

IRA executive director, Ibrahim Kaddunabbi Lubega, also told Daily Monitor in an earlier interview that 2013 would be dedicated to tackling claim settlement to ensure that players comply with the set claims settlement deadline.

Lion Assurance new managing director Mr Newton Jazire, said the firm intends to unveil a number of innovative products next year to grow its market share and break into the top three.

Among the products to be launched early next year is the legal expenses insurance product that will cater for individuals and businesses that need legal protection to defend themselves against civil or criminal cases brought against them upon payment of monthly fees.

The legal expenses insurance cover provides individuals and business with access to a range of covers to ensure that they don’t have to pay the huge legal fees asked for legal representation.
fkulabako@ug.nationmedia.com