Matatu Transport Vehicles Association roots for NHIF cover for PSV passengers

A public transport investors' lobby group wants the law changed to have the National Hospital Insurance Fund (NHIF) offer a special accident cover for PSV passengers.

The group says an NHIF cover will enable victims of PSV accidents access free treatment in public hospitals devoid of the bureaucracies that come with chasing claims from private insurance firms.

Speaking in Nairobi on Tuesday, members of the Matatu Transport Vehicles Association led by chairman Benson Mwenda said provision of such a cover by NHIF, a public entity, will help end the culture of holding 'harambees' to settle hospital bills.

“We propose that contributions be made by PSV owners to an NHIF vehicle cover to enable injured persons to get quality treatment in government hospitals, county hospitals and missionary hospitals,” said Mr Mwenda.

Hospital bills  

He said the proposed NHIF accident cover would not compensate anyone but only cater for hospital bills while motor vehicles would still be covered by insurance firms of their choice. Mr Mwenda also said Kenyans were free to take personal accident covers in other insurance firms.

The association argues that only a motor insurance regime under NHIF will spare the public the wrath of ambulance chasers, assessors, lawyers and judicial officers that have made the sector a bedrock of corruption.

 “We should also put in place an effective, efficient and reliable insurance pool where all the motor vehicle underwriters will ascribe to and in this, NHIF motor vehicle accident cover will be of more benefit and reliability,” Mwenda said in Nairobi on Tuesday.

According to the Association of Kenya Insurers (AKI), fraud in the insurance sector could cost from 8 per cent to 10 per cent of the total cash paid for health insurance costs and for losses and damage to assets, including cars.

Third party insurance

The Insurance Act Cap 487 provides that no motor vehicle or machine should be driven on Kenyan roads or highways without a cover of, on minimum, third party insurance. There are about 50 insurance firms in Kenya offering various services.

In such a cover under NHIF, the investors propose that the insurer should cater for costs such as surgical procedures including transplants and emergency road evacuation services besides radiology services, wellness and counseling and physiotherapy.

The lobby also called for the introduction of an NHIF fuel levy. “The main income should be as an NHIF Fuel levy collected from the Kenya Oil Refineries by the National Treasury. The fuel levy fund would be Sh1 per litre from diesel and petrol.”

Currently, NHIF is funded through member statutory deductions for formal sector workers and voluntary contributions for those in the informal sector, retirees and the unemployed. The fund has more than 25 million members, with those earning more than Sh100,000 contributing Sh1,700 a month.

The association wants the fuel levy to fund a separate inpatient and outpatient cover for senior citizens.

“Anyone above 70 years of age should enjoy free medical services including medicines in government and missionary hospitals,” Mr Mwenda said.

They also want children living in children’s homes who are under 18 GB years to also enjoy the cover as well as the provision of diabetes medication and high blood pressure medicines.