The Fund’s primary mandate is the payment of compensation to the policyholders of insurance companies that have been declared insolvent. Policyholders are therefore the primary beneficiaries of the Fund.
Policyholders holding policies issued by an insurance company licensed to operate within Kenya pay into the Fund a levy equivalent to 0.25% of their premiums. In this regard they are also contributors of the Fund.
Insurance Companies issue their clients (policyholders) with policies which are the basis of claims settlements and in the event of an insolvency of the insurer, the basis of the compensation amount payable.
Insurance companies contribute to the Fund through the payment of a levy equivalent to 0.25% of their premium receipts.
Insurance Companies benefit from the increased confidence of policyholders created by the existence of the Fund which ultimately contributes to stability and growth of the sector.
Insurance Companies also appoint two representatives to sit in the Fund’s Board of Trustees.
1. Brokers
An Insurance Broker is an entity that represents the interests of the policyholder to ensure they receive a fair deal from the Insurance Company.
As representatives of the policyholders, they have an in depth understanding of their needs and are therefore important partners to the Fund.
Insurance brokers appoint one representative to sit in the Fund’ Board of Trustees.
2. Loss Adjusters
Surveyors are professionals appointed by Insurance companies to independently assess, qualify and report on the actual loss or damage and quantify the claim payable under the policy for purposes of avoiding false claims.
They serve as a link between the insurer and the insured and usually function only in non life business. Their job is to assess the actual loss and avoid false claims.
3. Agents
4. The Government