Insurance and Consumer Protection: Lessons from India and Kenya

Abstract

Background: Consumer protection is a cornerstone of insurance law, ensuring fair treatment and trust between insurers and policyholders. Emerging markets like India and Kenya have unique regulatory challenges in balancing consumer rights with market growth.
Objective: This study investigates how insurance laws in India and Kenya safeguard consumer interests. It aims to identify gaps in existing frameworks and propose measures to enhance transparency and accountability.
Methodology: Using a comparative approach, the study examines legislative frameworks, consumer complaint mechanisms, and case law in both countries. Surveys with policyholders and interviews with regulatory officials provide additional insights.
Findings: India’s robust regulatory framework ensures greater consumer protection through mechanisms like the IRDAI grievance redressal system, whereas Kenya struggles with enforcement due to resource constraints. However, both countries face challenges related to public awareness and insurer compliance. Strengthening enforcement mechanisms and increasing consumer education are critical for improving outcomes.