Seven insurers in trouble over compensation delays.

Feuds over delayed payments by insurance firms for car repairs have escalated to the competition watchdog, with garage owners latching onto a recently adopted legislation that seeks to assist firms with weaker bargaining power to push for a settlement.

Records show that in the financial year 2022/23, the Competition Authority (CAK) intervened on behalf of several motor repairers, forcing at least seven insurance companies to settle delayed payments.

The watchdog found the insurers in breach of Abuse of Buyer Power (ABP) rules by unjustifiably delaying payment. The ABP regulation became effective in 2018 following a crisis of non-payment of suppliers by supermarkets.

The CAK found that the insurance companies not only had buyer power over these motor repairers in their panels but also abused this power by unjustifiably delaying payment.

The insurance companies were forced to settle payments amounting to Sh24,075,773 million which they had unjustifiably delayed, according to the CAK.


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