Senate alarm over Sh7bn unpaid NYS insurance claims
Bungoma Senator David Wafula told the Senate that many NYS officers and their dependents have gone without payment, leaving them in distress.
Families of fallen and injured National Youth Service personnel are facing hardship as the government delays the release of Sh7 billion meant to compensate them, despite being under an insurance scheme.
Bungoma Senator David Wafula told the Senate that many NYS officers and their dependents have gone without payment, leaving them in distress. He asked the Health Committee to urgently investigate the matter.
“I seek a statement from the Health Committee on a matter of national concern regarding the delay by the defunct National Hospital Insurance Fund scheme and its successor, the Social Health Authority, to settle claims under the NYS insurance scheme,” Wafula said.
The scheme, which was initially handled by NHIF, was transferred to the Social Health Authority after recent reforms. However, Wafula said unsettled claims have ballooned to Sh7.07 billion, covering personnel who died, suffered injuries, or whose families filed funeral claims.
“Several personnel of NYS and their families have borne untold suffering due to the failure by the defunct NHIF scheme and its successor, SHA, to pay their claims amounting to Sh7.07 billion,” Wafula told the Senate.
The senator explained that the arrears have piled up over the past four years under various insurance categories, including group life, work injury benefits, and accident cover.
He further disclosed that while the National Treasury had recently disbursed Sh1.48 billion to SHA for part settlement, the authority is yet to release the funds.
The Health Committee has now been tasked with investigating the delays and determining the steps SHA is taking to ensure prompt payment. It will also examine whether accrued interest will be factored into the final settlements.
The pending claims include 1,004 death cases amounting to Sh4.21 billion, 1,026 funeral cases worth Sh207.3 million, and 1,267 injury claims valued at Sh2.64 billion.
“The committee should explain the inordinate delay by the Social Health Authority to release the Sh1.48 billion disbursed by the National Treasury for part settlement of the claims, including the timelines for the same,” Wafula said.
The panel is also expected to push SHA to provide clear timelines for the complete settlement of all outstanding claims.
The comprehensive insurance cover for civil servants and NYS officers was launched under former Treasury Cabinet Secretary Ukur Yatani, who said at the time that it would not only improve welfare and motivation in public service but also grow the insurance sector.
