Insurance companies have so far paid Sh108.2 million on Covid-19 death claims since the disease was reported in Kenya mid-March.
Insurance companies have so far paid Sh108.2 million on Covid-19 death claims since the disease was reported in Kenya mid-March.
According to the Insurance Regulatory Authority (IRA), the total claims have hit Sh109.6 million, including Sh1.45 million paid for general health cover.
Coronavirus, which causes the disease, has infected more than 3,000 people and caused 89 deaths.
The Insurance Regulatory Authority (IRA) said that the industry has so far settled 10 life insurance claims.
Under general health cover, insurers have received 45 claims of Sh11.9 million but paid out Sh1.45 million.
“Out of these (general health insurance) claims, Sh1.45 million has been paid, Sh9.8million is pending and about Sh580,000 is unpayable,” IRA’s chief executive Godfrey Kiptum told the Senate.
Life Assurance is the second biggest long-term insurance business with gross premiums of Sh28.2 billion and IRA says claims in this class are expected to increase as the virus persists.
Although medical insurance companies have been paying coronavirus claims according to terms and conditions of their policies, the firms are facing a difficult period after the regulator directed that all coronavirus claims be settled.
Medical claims contribute the second largest premiums with gross written collections at quarter four of 2019 standing at Sh42.4 billion.
According to IRA, motor insurance and medical insurance classes of business account for 67.1 percent of the gross premiums under the general insurance business that makes up 57 percent of all insurance business.
Medical cover attracts equally high claims with Sh20.4 billion made in claims at the last quarter last year.
Medical cover has been struggling over the last two years with industry players suffering a loss of Sh75.1 million last year, an improvement from a Sh1.1 billion loss at the end of 2018.
As medical claims linked to the coronovirus spike, other medical claims have dropped as Kenyans keep away from hospitals afraid of coronavirus tests and being quarantined.
“We have noted that payments have slowed down and this could be attributed to the general slowdown in activities including invoicing,” Mr Kiptum said.
“That said, settling of amounts owed will continue, though at a slower pace than before. There has also been a noted decrease in hospital visits by the general public and this may have some bearing in the low numbers.”
