Kenyan Health Insurers Agree To Cover Costs of Coronavirus Patients

Health insurers in Kenya have agreed to cover the medical costs of Coronavirus in case their clients get infected.

A consensus that was reached between the Insurance companies and Insurance Regulatory Authority Chief Executive Godfrey Kiptum confirmed that the Covid-19 costs will now be covered even though the policies exclude pandemics and epidemics.

Last week, Insurance companies were hesitant to start covering the costs of the Covid-19 when the World Health Organization declared the virus a global pandemic.

The Insurers argued that it was difficult to cover the costs of a disease that was declared a pandemic since they would be forced to charge higher fees which most patients could not afford.

“The truth is, we might introduce a product that caters to coronavirus but the uptake may not be as promising. Very few Kenyans are conscious enough to buy such a cover,” AAR Insurance chief executive Nixon Shigoli.

Insurance experts say that once a disease is declared a pandemic, the burden of the medical expenses is transferred from the insurer to the Government.

“If there was to be a major attack, then all insurance companies would close shop. The claims will wipe the insurers out completely. That is why such exclusions are put in insurance policies,” said Association of Kenya Insurers.

Prior to the declaration by WHO, Coronavirus patients could have received treatment under their medical insurance cover but according to the Insurance Regulatory Authority, the option changed when WHO made the announcement.

Mr. Shigoli said the insurance companies are currently working on new policies where “chronic illnesses, pre-existing conditions and in the event of epidemics would be covered.”

“Even for travel insurance, those who decide to travel will have to pay from their own pockets to cater for any corona-related treatments.”

The new policy is now a sigh of relief to most Kenyan citizens who are having medical insurance covers as Kenya confirmed the first three cases of the Covid-19.

Globally 169,000 people have been infected since the virus outbreak in November 2019. The disease has spread in more than 150 countries prompting the WHO to declare it a global pandemic.

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