Govt rolls out first comprehensive insurance cover for civil servants, NYS

The Government has rolled out Kenya’s first comprehensive insurance cover for civil servants and the National Youth Service (NYS).

National Treasury and Planning CS Ukur Yatani said the launch of the cover is part of a historic moment for civil servants in the country.

“The launch of the enhanced insurance cover with the inclusion of Work Injury Benefits and Group Accident Cover will not only have a profound impact on the well-being of civil servants and their families, enhance public service motivation, and productivity but also boost the general growth of our insurance industry,” he said on Wednesday.

Amb. Yatani stated that throughout the COVID-19 pandemic, there has been adverse social, economic and psychosocial effects of the virus on the lives of Kenyans.

He lamented that civil servants have not been spared, particularly the front line essential health workers as they were called upon to redouble their efforts in discharge of their daily duties so as to ensure the country runs normally despite the overwhelming pressure.

“I indeed, recall that at the onset of the pandemic, the National Treasury & Planning alongside other key stakeholders was tasked by the President to look into ways in which to cushion these workers, by taking care of their health and insurance requirements especially during this challenging times of COVID-19,” he said.

According to the CS, following elaborate consultative meetings with relevant stakeholders including the Public Service ministry among others, it was agreed that in addition to enhancing the existing Group Personal Accident (GPA) cover and Work Injury Benefits Act (WIBA) cover, the provisions be extended to include a comprehensive Group Life cover to cater for all causes of death including death arising from critical illnesses such as COVID-19.

He said the provisions were extended to all civil servants and employees of the National Youth Service.

The Treasury CS further cited the Cabinet meeting held on September 10, 2020 that approved the proposal for a comprehensive insure cover and mandated the National Treasury, the State Department for Public Service and the National Hospital Insurance Fund (NHIF) to roll-out the scheme.

“Consequently, a contract was drafted between the three entities to operationalize the new covers, which will be administered by the NHIF. To this effect, I wish to reiterate the full and unequivocal commitment of National Treasury & Planning to the success of this project,” he added.

He noted that the enhanced cover will involve a co-insurance model of about 30 insurance companies and not only ensure that NHIF spreads the risk, but also spurs growth in the insurance industry and the general economy.

The co-insurance and facultative reinsurance model adapted under the insurance scheme is said to be in tandem with global insurance market practice that not only spreads the risk, but also drives efficiency and effectiveness in the settlement of claims.

“I am confident that this innovation in the local insurance industry will spur similar efforts by other players and in so doing expand our financial services sector. It’s worthy to note that, currently, the National Treasury & Planning pays out an annual premium of Ksh. 839million for Last Expense cover, but has no other cover whatsoever for Group Life, Group Personal Accident, WIBA and COVID,” Amb. Yatani said.

Under the new scheme, civil servants and employees of the National Youth Service will have a comprehensive insurance cover with a total annual premium of Ksh. 6.07billion per year.