The Pensions and Insurance Authority (PIA) has urged insurance companies in the Country to provide e-platforms for selling, payment of premiums, settlement of claims to existing and new Policyholders and the e-platforms must provide for handling complaints and grievances.
Authority Communications Manager Doreen Kambanganji disclosed to Money FM News in a statement that the Authority has been monitoring developments relating to the COVID-19 pandemic including its’ impact on the national economy and the insurance sector.
Ms Kambaganji said in keeping with its primary mandate of protecting insurance policyholders, the Authority has since issued guidelines, to assist the industry in its business operations.
“In keeping with its primary mandate of protecting insurance Policyholders, the Authority hereby issues the following guidelines, to assist industry in its business operations, insurers should expeditiously process and settle all claims, including where applicable, COVID-19 related claims,” She said.
“She has also urged the companies not to reject claims due to delayed reporting or challenges that may arise due to COVID-19 related directives issued by Government but provide e-platforms for selling, payment of premiums, settlement of claims to existing and new policyholders as well as handling of complaints and grievances”
Ms Kambakanji further urged the companies to conduct and submit to the Authority ‘stress tests’ on their business activities, which must include liquidity, capital adequacy and solvency due to the effects of COVID-19 on their statements of financial position and cash flow.
The companies were also encouraged to put in place contingency measures to enhance the fair treatment of customers, such as deferral of payment and or renewal of premiums where a policyholder does not have access to an alternative payment mechanism. This may include the provision of premium holidays and payment of premiums in instalments.
She added that the Authority will continue monitoring developments around COVID-19, including updates by Government and may issue further guidance where necessary.