Microfinance Gateway>Kenyan Insurance Company to Cover Losses from Post-Election Violence

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Home » News » Kenyan Insurance Company to Cover Losses from Post-Election Violence

Kenyan Insurance Company to Cover Losses from Post-Election Violence

Co-operative Insurance Company of Kenya Limited (CIC) has announced that it would cover losses incurred by businesses as a result of the post-election violence. It placed the total risk exposure through its microinsurance section at Sh17 billion (US$241 million).

CIC managing director Nelson Kuria said the payments would be done within the insurance terms and conditions, subject to the policy taken. He maintained that CIC would be flexible in its dealings with the affected. The announcement came a day after the Association of Kenya Insurers (AKI) placed an advertisement in local media stating that loss or damage arising from political risks would not be covered.

CIC does not have the political risk exclusion clause that would have effectively ruled out any compensation for claims arising from the current political impasse in the country. Most insurance policies have such a clause which prevents claims arising from riots, civil strife and other acts of violence like arson. In the current chaotic environment in Kenya, most of the recent losses are related to arson or looting of businesses, buildings, and assets like vehicles and farms, and thus would not be covered by insurers with a political risk exclusion clause.