Mombasa: Human Rights Defenders are appealing to the Insurance Regulatory Authority (IRA) to expedite the probe into the failure of an International Insurance firm to settle a claim of a small company after a fire incident. Savy Company, a startup dealing with web and software development, suffered a setback on August 4, 2024, after a fire engulfed its offices at the Mombasa Trade Centre building, causing damages to equipment.
According to Kenya News Agency, the company had a general insurance policy that covered it in case of fire and other unforeseen incidents. However, despite notifying the insurance company, it has not been paid, prompting it to write to the IRA. Michael Magak, a human rights activist, said they received a complaint from the company, and the delay in paying the claim also affects the company’s customers.
Magak stated, “According to our investigation, they were fully paid up in terms of premium by the time the fire incident occurred.” He added that the company was expected to be paid for the loss estimated to be Sh18 million incurred; however, their claim has not been paid despite providing all the necessary evidence. “We have seen an expert opinion on the fire that says an electrical fault caused the fire and therefore the blame cannot be put on the policyholder,” stated Magak.
The activist further expounded that the company was a source of livelihood for the proprietor, staff, and customers. “These livelihoods have been disrupted. The family of the director have been rendered destitute. We must condemn the behaviour of the insurance company,” he said. The matter has been taken up by the IRA, and the authority was urged to fast-track the conclusion of the case to alleviate the suffering of the company employees.
Magak emphasized, “Children are not going to school. People are going hungry. The insurance company has failed in its obligation. We are calling on the IRA to move with speed to correct the situation and ensure the insurance company is accountable.” The activists threatened to march to the offices of the insurance company to demand the payment of the claim.
On her part, Mariga Shee lamented that many policyholders, when they get into accidents, are taken in circles instead of receiving prompt payment of their claims. Evans Momanyi wants courts to publish cases involving insurance companies for Kenyans not to take policy with them. Momanyi mentioned that the company had promised to develop a crowdfunding platform to support Persons Living with Disabilities to get assistive devices from donors and a platform to track the planting of mangroves.