Latest TSC information regarding health insurance for teachers.
TSC health insurance updates The Teachers Service Commission (TSC) is in the news due to an allegedly incorrect approval of Minet Insurance Brokers (MIBK) for Sh149 billion in teacher health insurance coverage.
There are also questions about whether the insurance business was given the contract in spite of previous teacher complaints that it was offering subpar services, and whether everyone involved in the process completely ignored breaking the law.
Even after being made aware of the procurement procedure violations, Tender Supply Chain at the TSC has remained silent.
The successful intermediary in a tender to provide teachers with full medical insurance coverage in 2022–2025, Ms. Minet Insurance Brokers Kenya Ltd. (MIBK), changed its legal status to underwriter and refused to give teachers the entire amount of the multi-billion shilling contract.
Wairegi Gatetua, an attorney, wrote a letter to the Insurance Regulatory Authority (IRA) through its Commissioner of Insurance stating this.
According to newly available evidence, TSC may have violated Section 156(2) of the Insurance Act by paying MIP over Sh149 billion in medical insurance premiums over a ten-year period.
TSC tender document TSC/T/01/2022-25 called for the services of a consortium to provide teachers with comprehensive medical insurance under a three-year framework contract that is renewable annually.
The contract that the consortium and the TSC executed is purportedly not giving teachers their full value because it was wrongfully awarded to a registered insurance broker instead of an underwriter, as specified in the bidding agreement.
TSC sent information via WhatsApp on Health Insurance Executive Nancy Macharia’s phone; she did not pick up or respond calls.
Godfrey Kiptum, the Director-General of the Insurance Regulatory Authority (IRA), was also not available for comment; his phone went unanswered.
The IRA was expected to formally confirm within seven days the percentage of premium that the law firm that had previously placed TSC on notice for several legal breaches in the captioned tenders had remitted to the risk carriers yearly over the previous 10 years.
Given their involvement in this case, Gatetua also asks you to confirm any oversight you may have had over Ms. Minet Insurance Brokers Kenya Ltd. in her capacity as a medical insurance provider and to “establish how the risk carriers provided cover, if indeed they did, without receipt of the attendant premiums in full.”
To sum up
Verifying that the policy document issued by the consortium that won the contract complies with the conditions of the agreement reached by the consortium and the purchasing body is another duty of the insurance industry regulator.
For the Sh 149 billion that Minet Insurance brokers have paid and retained over a ten-year period, Gatetua demanded that “you also verify that the risk carriers and insurance underwriters in the consortium are accountable for paying income tax, premium tax, and any other applicable taxes to the Kenya Revenue Authority.”
The legal firm threatened to start the required legal procedures without mentioning the IRA in the event that the sought material was not produced, even at the risk of paying fees and suffering other unforeseen consequences.
officials such the attorney general, Felix Koskei, the head of public service, the auditor general, and the head of procurement at TSC.
Alongside his colleague at the Ministry of Public Service, Gender, and Affirmative Action, the principal secretary overseeing the Ministry of Financing and National Treasury.
The letter headed “Unlawful/illegal contract for provision of teachers medical insurance cover (three years framework contract)” addresses a number of people, including TSC’s head of procurement.
Latest TSC information regarding health insurance for teachers.
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