Home ECONOMY IRA Suspends Premium Payments for 3 Months

IRA Suspends Premium Payments for 3 Months

by biasharadigest

The Insurance Regulatory Authority (IRA) has offered a three-month break in the payment of premiums by policyholders who might be facing financial strains due to COVID-19.

According to IRA CEO, Godfrey Kiptum, insurance companies will only be allowed to introduce new product exclusions, or change product terms and conditions, after getting approval from the regulator. Furthermore, companies wishing to withdraw some products will have to get permission from the Commissioner of Insurance.

Insurers should avail policyholders a three-month grace period. The grace period may be over and above any contractual premium holidays already in place for existing policies.

Business Daily quotes IRA CEO, Godfrey Kiptum

Initially, when the World Health Organisation (WHO) declared COVID-19 a pandemic, the Association of Kenya Insurers (AKI) said that coronavirus victim would not be covered under insurance, seeing that Insurance firms exempt their policies from covering pandemics

However, IRA entered into talks with health insurers, and they agreed to cover the medical costs of coronavirus victims in the country.

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