In the world of politics, elected officials often engage in logrolling to advance their agendas. These behind-the-scene deals create unlikely alliances, turning politicians into strange bedfellows. In the process, they frequently lose sight of their duty to serve the electorate or listen to the public. Direct evidence of the quid pro quo is the frustration and anger expressed by Kenya’s Gen Z in the widespread backlash against Kenya’s Finance Bill 2024.
The protests duped by Gen Z as Occupy Parliament were because of a public outcry against Kenyans' proposed Finance Bill 2024, which introduced new taxes that threatened to increase the cost of living. The frustrated youth came out in droves, their voices flustered but resolute as they demanded economic reforms and transparency from the government. The youth paid a high cost with several lives lost, having faced a range of oppressive measures including widespread police brutality, arbitrary arrests, and abductions. The wave of activism experienced was a tell-tale sign of the growing political awareness among Kenya's younger generation, who refused to be silenced in the face of policies they deemed unfair.
During this unprecedented event, Chief Inspector David Karuri Maina lost both of his arms after a tear gas canister tragically exploded on his body as he managed the protests. The accident occurred when Inspector Maina failed to release a detonated canister. The event is something that left everyone who heard it, including the Nairobi regional police commander - Adamson Bungei and the Tourism Cabinet Secretary, Dr. Alfred Mutua, aghast and grasping for explanations. The Cabinet Secretary regretted the trauma the commander of the Rapid Deployment Unit (RDU) at Embakasi, and his family would face after the life-changing incident. He remarked that Maina had "been disabled in the line of duty by the protesters,” and pledged a KSh. 1 million cash donations, alongside Narok Governor Patrick Ole Ntutu. The event not only drew the attention of government officials but also sparked heated discussions on social media. Shock and bafflement were the standard reactions of the netizens as they learned the story’s details. Further media reports provided the tone and focus of the burgeoning story revealing that Mr. Maina would face a prolonged wait for insurance compensation as the Kenyan government was yet to disburse KSh. 15 billion in premiums for the police insurance cover. The incident is a sombre reminder of how quickly our lives can be impacted during heightened political risks, highlighting the importance of having a personal life assurance cover in place to protect against personal bodily injuries even when the employer may have one in place.
The Need for Personal Life Assurance Beyond Employer Coverage
Many employees often assume that the life assurance coverage provided by their employer is sufficient. The benefits, if any, are typically offered as part of an employee retention strategy to enhance the overall compensation package. However, not all employers provide life assurance, aside from the mandatory Workers Injury Benefits Act (WIBA) cover, which provides compensation to employees for work related injuries, occupational diseases and death in the course of employment only. The WIBA Act of 2007 came into operation in Kenya on 2nd June 2008 and is administered by the Director of Occupational Health and Safety Services. The Act applies to all employees in Kenya but not to members of the armed forces. Therefore, there are several reasons why you should consider taking up a personal life assurance cover on top of the benefits your employer already offers.
1. Limited Coverage by Employer Plans
The employer-provided life assurance plans offer minimal coverage that oftentimes is not enough to cover all your needs. They are often a multiple of the employee’s salary such as three to five times your annual salary. The amounts may seem sufficient, but it is not enough for long-term financial stability, especially if you have dependents or significant financial obligations including loans or mortgages. Personal life assurance policies help to fill this gap because an individual can easily estimate the sum required to maintain a certain level of lifestyle for their loved ones, ensuring that the dependents maintain their standard of living should the worst happen.
2. Job Instability and Portability Issues
The job market in Kenya remains fast-paced and job stability is not guaranteed. Besides the lack of job security, Gen Z prefers job-hopping over remaining with the same employer long term. The generation will often change employers in search of better opportunities and terms. When an individual transitions to a new company, the employer-provided coverage ends with the termination of their employment contract. Therefore, the individual is exposed and unprotected during employment transitions. One is advised to take up a personal life assurance cover, essential during these periods of exposure. The personal cover runs independently of the cover offered by your employer and will remain in place even after a change of your employment status. The cover gives you security no matter where you work.
3. Coverage for Unique Needs
The other reason to take up a personal life assurance cover is the ability to customize your own policy to fit your current and future needs or goals. The employer-provided covers are often one-size-fits-all. The covers do not consider an individual employee’s financial obligations or goals. Personal life assurance policies enable you to customize a cover to meet your specific needs including mortgage, providing for your child's education, maintaining a certain level of lifestyle and supporting yourself in old age. The flexibility ensures an individual enjoys coverage that mirrors their financial situation and priorities.
4. Protection Against Inflation
Over time, inflation erodes the value of any investment, and your life assurance coverage is not spared. The covers provided by employers do not have an element of interest to account for the rising cost of living. This means that an employee is underinsured in the future. Besides, the plans offered by employers are term life assurances that do not build any cash value like personal life assurance policies that can be cashed out after a given number of years. Personal life assurance policies allow an employee to adjust coverage as needed to cater to future inflation and financial plans. Therefore, under these policies, the individual’s and the family’s future financial needs can easily be met, no matter how the economy performs.
5. Supplementary Benefits
Employer-provided policies cover a limited scope as a wider scope is associated with higher premium costs. Therefore, the policies may not cover all aspects of the risks an individual may face. For example, the policy may cover an employee for diseases and injuries sustained while at work during work hours. This leaves the employee exposed in the event the injury occurs outside work hours. On the other hand, personal life assurance policies can be customized to include additional features, such as critical illness cover, medical reimbursement, and disability riders. In the case of a serious injury, like that sustained by Chief Inspector Maina, these benefits can provide financial support for medical expenses and lost income. This additional protection can offer a critical lifeline in times of crisis where the employer’s cover is insufficient.
6. Payment of Premiums
The economic environment is volatile, and companies may not always realize profits. Due to budget cuts and economic downturns, the company may decide to reduce the benefits amount. There are rampant cases where employers have failed to remit premiums to maintain the cover in time. In such a situation the employees unknowingly remain uninsured which places them at a higher risk in the event of a tragedy. Personal life assurance ensures an individual has control over the payment of premiums to maintain their respective covers and secure the family’s financial future, regardless of any changes to the employer's benefits package. In fact, Gen Zs may negotiate lower rates individually, owing to their age and healthy lifestyle.
Without a personal safety net in place, an individual is left to survive on goodwill donations from well-wishers in times of a crisis. Mr. Maina’s unfortunate incident, compounded by the government’s failure to remit premiums for the police cover, is a stark reminder of the vital role of life assurance. Cover gaps such as lack of timely premium payment highlights the risks of relying solely on employer-provided coverage. While the policies are highly discounted and designed to suit the employers, they may not offer comprehensive protection for life-changing injuries. In some cases, unfavourable clauses beyond the control of an employee such as nonpayment of premiums may be pulled to their disadvantage. We encourage individuals to plan their own financial portfolios including insurance protection, investments and retirement planning. The employer benefits should be an add-on to your portfolio rather than a substitute for personal coverage. Insurance is the most important part of your portfolio, and it should include personal accident cover (available for as low as KSh. 1,095 or $10.00), health insurance and life insurance with critical illness riders.
Isaac Obwocha | Risk Officer – Life | Minet Kenya
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