Lang’ata MP Phelix Odiwuor, also known as Jalang’o has announced plans to introduce the Motor Insurance Bill 2024 in the National Assembly.
The Bill aims to address long-standing issues in Kenya’s motor vehicle insurance sector by proposing the abolition of compulsory motor vehicle insurance, arguing that the current system disproportionately benefits insurance companies at the expense of motorists.
“Most Kenyans take insurance not because they need it but to avoid arrests,” Jalang’o remarked.
Highlighting the inefficiencies, Jalang’o accused insurance firms of delaying or denying rightful compensation.
“Thousands of Kenyans queue daily to claim compensations on fully insured vehicles, yet insurance companies fail them,” he noted.
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The Bill will compel insurers to honor full compensations and introduce a unique provision—refunds of 50% of premiums for policyholders with no claims during the coverage period.
“People pay KSh500,000 yearly, yet insurers invest this money without accountability. This Bill will end such practices,” he added.
Jalang’o also criticized the practicality of third-party insurance, labeling it “useless” for failing to protect policyholders.
However, critics argue the Bill’s refund clause undermines the insurance model. “Insurance relies on probability; refunds are impractical,” said one observer.
The Bill is poised to spark significant debate when tabled in Parliament.
