Resolution Insurance Kenya has been accused of refusing to pay claims, or delaying them despite accepting to settle them.
In one such case, Alice Gakuo says that the underwriter has kept her waiting for months after she launched a claim on her car, which was repaired on the underwriter’s instructions in a garage of their choice.
“I am a bona fide policyholder at Resolution Insurance, and I lodged a claim with them. They chose one of the garages on their panel to repair my car. However, to my utter shock, upon the completion of the repair works and issuance of a release letter on 18th May 2021, the garage has exercised lien over my car. They purport that that Resolution Insurance Company has not settled their repair bills,” says Ms Gakuo in a letter dated June 29, 2021.
Despite having reported the same to the Insurance Regulatory Authority (IRA), no action has been taken against Resolution Insurance, which is still receiving premiums from unsuspecting customers.
“I have been suffering for over a month now, my car having been impounded by the insurer’s garage. It certainly is unthinkable that they are still collecting premiums under your license and exposing policy holders’ property to attachment by their business partners on account of their apparent insolvency and/or poor financial planning,” adds Ms Gakuo.
The underwriter instructed the mechanic to do the repairs on April 28, 2021 at a cost of Ksh88,188, with orders that the vehicle should not be released before “re-inspection and proof of release letter”.
On May 18, the Express Auto-garage was instructed to release the car, but refused to comply on grounds that the underwriter had not cleared the bill.
“Please release the same to the insured upon re-inspection by the assessor and signing of the satisfaction note by the insured. Thereafter, kindly send us your invoice for settlement together with the signed satisfaction note. All unserviceable parts removed and replaced should be kept for possible collection within 60 days after completion of repair,” read the letter by claims analyst Vincent Seso.
The car, registration number KCM 194M has not been released to the owner to date, marking almost three months since it was grounded.