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REF : KATO/CIRCULAR/ JAN-23/1
DATE : 5th January, 2023
TO : All KATO Members
Dear Member,
CRITICAL INSURANCE PRODUCTS TO CONSIDER IN 2023
We wish you all a Happy New Year 2023 and trust that this finds you well. As the Year 2023 gets off to a start, this is an opportune time for KATO Members to revisit and address some key insurance related matters. There are TWO Insurance Covers that have been featuring from time to time and we have provided a comprehensive overview on the following:
- Workman Injury Benefits Act (WIBA)
- Employer’s liability Insurance
We urge members to take time to read through the Write-Ups attached and contact the KATO Insurance Agency Manager for further assistance: –
Dominic Mokua
KATO Insurance Agency Manager
Mobile: 0726 711986
An Overview of WIBA:
| No. | Question | Answer |
| What is WIBA | WIBA stands for Work Injury Benefits Act and is an Act of Parliament 92007) designed to provide for compensation to employees for work related injuries and diseases contracted in the course of their employment and connected purposes. | |
| Who is required to have it? | The Act clearly states that it is the responsibility of every employer to obtain an insurance policy for the safety, health and well-being of their employees, working at the organization or business premises. ALL employers are therefore required by law to take the WIBA Cover for their Employees. | |
| What does WIBA Cover? | WIBA covers your employees against accidental bodily injury, disablement, or death whilst on duty and engaged in the execution of your business &/or any project undertaken by you,
The injury or illness must arise out of and in the course of employment. |
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| How much does WIBA pay as compensation? | Benefits of a WIBA Cover to the Employer:
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| Are there any exclusions? | There are some exclusions and WIBA will not compensate your employees where:
i. an accident not resulting in serious disablement or death, is deliberate or caused by misconduct of your employees. ii. Accidental death or work-related injuries occur outside the normal working hours of your employees. iii. Work related injuries and occupational diseases are contracted outside Kenya. iv. Liabilities arise out of any Court proceedings. |
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| How Much does WIBA Cost? | The cost of WIBA Insurance cover differs from company to company and will be calculated based on your employees’ earnings and nature of their work. | |
| How can I get the WIBA Cover? | Kato insurance Agency is in a position to address your WIBA requirements. |
Overview of Employer’s Liability Cover:
| No. | Question | Answer |
| What is Employer’s Liability? | The Employers’ Liability Insurance is an additional cover that helps to cover any gaps that may be left by WIBA. Such gaps could be exclusions under WIBA (e.g. negligence) and costs related to Lawsuits. | |
| Who is required to have it? | Unlike WIBA, the Liability Insurance is an extra layer of protection and is therefore not itself mandatory.
It is however important to note that an employee reserves the right to sue the employer for a work-related injury or accident arising from negligence despite having been compensated under WIBA or a Group Personal Accident policy. |
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| What does Employer’s Liability Cover? | The Employers’ Liability policy serves to legally protect the employer in the event that an employee sustains bodily injury by accident or disease (during the period of their employment). This means that the employer is covered against legal liability under common law for damages, negligence or statutory duty and any claimant’s [employee’s] costs and expenses of litigation.
Additionally, the Insurance covers the employer for any legal costs or expenses incurred during this period. |
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| How Much does Employer’s Liability Cost? | Costs will vary from company to company depending on your employee profile | |
| How can I get the Employer’s Liability Cover? | Kato insurance Agency is in a position to address all your Insurance Related requirements. |
Kind regards,
Fred Kaigua, ACIArb, CPM
CHIEF EXECUTIVE