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Public officers get improved insurance scheme after NHIF law reviewed

Wednesday, March 31st, 2021 00:00 | By
Treasury Cabinet secretary Ukur Yattani. Photo/File

Civil servants, disciplined forces and county government staff are among a group of public officers scheduled to benefit from a revised group insurance scheme by the government.

The move follows the revocation of several clauses of the National Hospital Insurance Fund (NHIF) Act to consolidate all medical insurance covers for the public officers under the State-funded insurer.

Government waived several legal clauses to allow NHIF to extend its functions and operations to providing insurance services for the public sector.

In essence, the parastatal is now in direct competition with private entities such as Britam, CIC and UAP, among others, to offer group insurance covers.

Treasury Cabinet Secretary Ukur Yatani, in a gazette notice dated March 25, 2021, also exempted NHIF for the purpose of offering enhanced medical, group life and last expense cover civil servants, National Police Service, Kenya Prison Service, county governments, county assemblies and constitutional commissions.

The developmet comes after a directive by the Insurance Regulatory Authority (IRA) last year to NHIF to stop offering group medical cover and last expenses cover to civil servants until it abides by the law.

It was after NHIF started offering medical cover to police officers and other civil servants, attracting uproar from the private sector insurance firms.

The change of law also exempts NHIF from IRA scrutiny as the government has revoked Section 19 of the Insurance Act that would have placed it under the supervision of the regulatory body for providing commercial insurance services.

Exception will stand for one year to give NHIF time to look for an external provider for the Group Life and enhanced medical covers.

Other beneficiaries of the new move are State departments; State corporations and retired public servants including retired State officers, Kenya Association of Retired Officers, National Association of Retired Police Officers, former parliamentarians and Central Bank of Kenya Pensions Fund.

Welcoming Treasury’s move yesterday, the Union of Kenya Civil Servants (UKCS) said it was long overdue and will give the NHIF ample time to look for an accountable and respectable provider to offer the services.

“The Act does not provide Group Life cover and the Treasury had to clear it by making the exemptions to clear the way for NHIF to offer the same,” said Jerry ole Kina, vice chairman of the UKCS.

 According to Kina, the one year waiver will give Treasury time to establish whether NHIF has the capacity to support the Group Life cover.

“Ours will have to safeguard the interests of civil servants to make sure that whoever wins the tender will be above board, accountable and reputable company,” Kina explained.

He added that although the union had reservations with the NHIF running Group Life, they were opposed to the private sector taking over the Group Life cover.

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