Deal to allow insurance regulator aid in prosecution of rogue advocates

The Insurance Regulatory Authority and Advocates Complaints Commission (ACC) have signed a Memorandum of Understanding to address the growing concerns about professional misconduct by advocates in managing insurance compensation claims.

The deal will show that the regulator ensures insurance firms fully cooperate with ACC to enhance efficiency in the execution of advocates whom complaints have been levelled against.

In other terms, ACC will formally request IRA's intervention in cases where insurers are uncooperative.

ACC is a statutory body established under Section 53 of the Advocates Act (Cap. 16 of the Laws of Kenya), and is mandated to receive and inquire into complaints of professional misconduct against any advocate, firm of advocates, or any of its members or employees.

In addition, the MoU establishes a framework for regular information exchange, capacity building and collaborative policy development to bolster consumer protection.

IRA says the move was necessitated by the increased complaints against advocates, particularly in the settlement of insurance compensation claims.

"A significant number of complaints lodged with ACC involve withholding of compensation by advocates from settled insurance claims. ACC has faced challenges in obtaining information regarding the status of settlement of claims from insurance companies, thus hindering its ability to effectively investigate and resolve these complaints," the regulator says.

Speaking during the MoU signing on Monday, the commissioner of Insurance and the Authority's CEO Godfrey Kiptum said the deal is a critical step in the ongoing efforts to ensure the insurance industry operates with the highest levels of integrity and accountability.

"This will be cemented by working closely with the commission, and we are committed to addressing any gaps that allow for the exploitation of policyholders and ensuring that justice is served," Kiptum said.

He added that the move is meant to bolster consumer protection and enhance transparency in the process of settling claims by insurance companies.

On his part, ACC chairman Moses Cheboi said the cooperation of the authority is crucial in their mission to uphold the standards of the legal profession.

"This MoU provides us with the necessary tools and support to effectively investigate and resolve complaints, particularly those involving the remittance of insurance compensation by advocates. We look forward to a fruitful collaboration that will ultimately benefit the public."