Insurance coverage Regulatory Authority chairman Mwambu Mabonga on the authority’s Higher Hill workplace on February 16, 2023. PHOTO | DIANA NGILA | NMG

Insurers rejected 6,591 claims price Sh485.6 million within the three-month interval to December final yr, marking an over two-fold hike from the earlier quarter the place 1,904 claims had been rejected, knowledge from the Insurance coverage Regulatory Authority (IRA) reveals.

Most of them had been within the medical and motor sectors and had been attributed to fraud and delayed submitting.

Claims declined are outlined by IRA as requests that an insurer has vetoed for varied causes referring to the coverage doc or in any other case.

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“In This autumn 2022, legal responsibility and non-liability declined claims had been 53 claims amounting to Sh33.38 million and 6,365 claims amounting to Sh226.53 million respectively. Lengthy-term declined claims had been 173 amounting to Sh225.71 million,” mentioned IRA in its This autumn 2022 Claims Report.

Insurers have within the latest previous decried rising circumstances of fraud which have bedevilled the sector, with motor operators making claims on fictional accidents and signing a number of insurance coverage contracts on a single car.

Different motorists have additionally been discovered to deceive insurers by deploying their autos for various actions from these insured towards which interprets to larger publicity dangers.

Final yr, IRA reported that malpractices that included false motor accident claims, stealing by brokers, conspiracy to defraud and fraudulent motor theft claims had been inflating insurance coverage premiums within the nation by as much as 25 p.c.

The adoption of know-how and the attendant digitisation of the sector is nonetheless occasioning a shift by minimising fraud circumstances by means of the enhance of accountability.

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In the course of the quarter beneath overview, insurance coverage firms paid out claims price Sh40.6 billion, with basic legal responsibility and non-liability claims taking Sh4.2 billion and Sh17 billion respectively.

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