An insurance broker has been charged with stealing, for withholding Sanlam Insurance premiums meant for reinsurance at Waica, Continental, Ghana and CICA Reinsurance companies.
Cecilia Bridgit Rague, CEO of Underwriting Africa Insurance Brokers was charged with stealing over Sh11.8 million in December 6, 2019 at NCBA Westlands Nairobi jointly with others persons not before court. She denied the charges.
The prosecution led by Anderson Gikunda said monies were entrusted to the accused for remittance as reinsurance premiums to Waica, Continental. Ghana and CICA.
Mr Gikunda said the accused was arrested on September 16 and held in custody and asked for hefty bail terms due to the nature of the crime.
“I have no instructions to oppose the accused being freed on bond. I urge the court to consider the colossal sum involved while fixing the bail terms,”Mr Gikund said.
The accused was given a bond of Sh2million with one surety with an alternative cash bail of Sh1million and the case set for hearing December 10 2020.
Insurance brokers have been accused of diverting premiums exposing individuals and companies to potential losses when risk materialises.
According to the Insurance Regulatory Authority, there has been noted an increase on outstanding premiums that had grown to Sh43 billion, equivalent to 19.8 percent of the Sh216.2 billion gross premiums that Kenya’s 37 insurance firms underwrote in 2018.
This means risks covered, which are in excess of Sh500 billion, are not recognised under the “cash and carry” principle. The principle stipulates that if an insured party suffers loss before the premium is remitted to the insurer then the insured cannot be compensated.
Industry players traded accusations over who is to blame even when businesses, individuals and households who diligently pay their premiums are exposed to loss of their property and investments.