Data collected by the Association of Kenya Insurers (AKI) shows that Marine Cargo Insurance premiums grew by 64 per cent between January and June 2017 to Kes1.14billion compared to Kes694.9million during the same period last year.
Out of the 35 insurance companies that wrote the risk in the first half of the year, two companies recorded premiums of Ksh100 million and above. The highest premium was Kes135.99 million.
Though positive, the premiums are yet to meet the industry estimation which was projected to be at least Ksh5billion by half year based on the country’s import figures.
To fully implement Section 20 of the Insurance Act, the Statute Law (Miscellaneous Amendments) Act, 2017 amended Section 20 (4) of the Insurance Act to increase penalties from Kes10,000 and/or imprisonment up to one year to Ksh5million and/or imprisonment of up to five years for any insured who places Kenyan business with an insurer not registered under the Act.
Further, the Marine Insurance Act Cap. 390 was amended to make it compulsory to insure marine cargo imports. This will be operational from 1st January 2018.
Engagement between KRA, IRA, KenTrade and AKI are ongoing to ensure that the automation of marine cargo insurance is completed as soon as possible to make the purchase of marine cargo insurance by importers easy and convenient.
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