Public transport operators have filed a petition before the National Assembly's Public Petitions Committee, seeking the government's intervention over insurance companies' failure to honour their claims.
The Committee, chaired by Vihiga Member of Parliament, Kavai Kagesi, convened a meeting on Thursday, April 17, to deliberate on a petition alleging the Insurance Regulatory Authority (IRA) had failed to protect public transport operators in matters concerning insurance claims.
The petition, presented to Parliament by Machakos lawmaker Caleb Mule, raised serious concerns about three insurance providers. The providers were accused of refusing to honour valid claims submitted by matatu operators.
The insurance firms in question are accused of failing to provide legal representation for these cases, a lapse that has reportedly led to costly court rulings against the operators.
According to the matatu operators, despite consistently complying with all policy requirements — including the timely and full payment of insurance premiums — the insurers allegedly defaulted on their obligations.
In their petition, the public transporters noted that at least 4,000 public service vehicles operating in Kenya’s Lower Eastern region were embroiled in court cases stemming from road accidents.
While describing the situation as a “significant and irreparable harm,” the petitioner called on the committee to intervene and ensure accountability from both the insurers and the regulator.
“Honourable Chair, these insurance firms are ripping off Matatu Owners. Some are charging third insurance policies for as low as two thousand shillings annually, knowing very well that they are not going to pay, in the case of an accident," noted MP Mule.
“Hon Members, these insurance agencies must be made to honour all outstanding and legitimate claims. The public transport sector plays a vital role in the day-to-day functioning of this country, as well as for revenue generation, and as such must not continue to be exploited,” he added.
Mule's sentiments were backed by the Chief Executive Officer (CEO) of the Federation of Public Transport Sector, Kushian Muchiri, who accused insurance companies of ignoring the set regulations.
“We are here simply because the industry's governing laws are being ignored, leading to the extortion of Matatu owners through fictitious claims, and no one to protect us," Muchiri noted.
Muchiri further urged the committee to urgently intervene to resolve the outstanding accident claims and to compel the IRA to establish and strictly enforce comprehensive standards of conduct for all insurance companies operating in Kenya.
The Committee is now expected to review the petition and investigate the matter by inviting the concerned parties before it to give submissions before tabling its report on the floor of the House.
