Barely a week after the Insurance Regulatory Authority (IRA) took decisive action against Directline Insurance, the regulator is now under scrutiny for allegedly ignoring gross malpractices and corruption within Trident Insurance Company Limited.
This inaction reportedly jeopardizes billions of shillings belonging to policyholders.
Despite Trident Insurance’s involvement in corruption, forgeries, and non-payment of claims, the IRA has failed to take any substantial measures against the company.
Trident Insurance, owned by controversial billionaire Diamond Ali Lalji Nurani, has been operating in blatant disregard of the law, seemingly without consequence.
Sources within the IRA allege that Lalji has bribed several senior officials within the regulator, ensuring that his and his company’s malpractices go unnoticed.
This alleged complicity poses significant risks to millions of policyholders and beneficiaries, whose interests are being sidelined.
One of the major scandals involving Trident Insurance is the forgery of recommendation letters from reputable hospitals to secure lucrative medical insurance contracts.
Lalji and his associates have reportedly forged documents from Nairobi Women’s Hospital, MP Shah Hospital, and Mater Misericordiae Hospital, among others.
These forgeries helped Trident Insurance win a tender for the “Provision of MCAS and staff cover KCA/MED/02/23-24,” securing a contract worth over KSh 39,002,526.
The company presented a bid with fraudulent documents to win this tender, which covers outpatient, in-patient, dental, optical, and maternity services.
Sources close to Lalji claim that he boasts about his unmatched ability to bribe tender committees in various county governments and both public and private institutions.
Our investigations have revealed that the Ethics and Anti-Corruption Commission (EACC) is actively looking into these allegations.
Further compounding the issue, Lalji and Trident Insurance have been using the CVs of directors and senior managers who left the company months or even years ago to bolster their tender documents.
Despite the IRA being aware of the company’s lack of qualified technical staff, it has allowed Lalji and his proxies to continue their operations.
This has enabled them to siphon money from the company’s coffers and divert funds meant for paying claims, which now amount to billions of shillings.
The IRA’s apparent negligence in addressing these serious issues raises questions about its role as a regulator.
The protection of policyholders and the integrity of the insurance industry depend heavily on the regulator’s ability to enforce laws and hold companies accountable for their actions.
By failing to act against Trident Insurance, the IRA is perceived as complicit in the corruption and malpractices that are harming policyholders.
The ongoing EACC investigation into Trident Insurance provides a glimmer of hope for accountability.
However, the IRA must also step up and take immediate, stringent action against Trident Insurance and its owner, Diamond Ali Lalji Nurani.
Restoring trust in the regulatory framework and protecting the interests of policyholders are imperative for the stability and reputation of Kenya’s insurance industry.
The public and policyholders alike will be watching closely to see if justice will be served and if the IRA will uphold its duty to regulate the industry effectively and fairly.
The stakes are high, and the need for transparency and accountability has never been more critical.
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