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Top 10 Things You Should Know About WIBA Insurance in Kenya

December 11, 2023 BUSINESS INSURANCE

An image showing an employee filling in a claim form for WIBA Insurance in Kenya

WIBA Insurance in Kenya is a mandatory insurance policy that every employer must have as per the Work Injury Benefits Act (WIBA) of 2007. The WIBA Act of 2007 requires that every employer even an employer of one, must compensate their employees following any injury or disease contracted during work or connected/related activities.

What is Covered by WIBA?

What are the benefits covered under WIBA Insurance in Kenya?

  1. Death benefits of 8-year salary
  2. Permanent total disability benefit of 8-year salary
  3. Temporary total disability benefit of up to 104 weeks
  4. Medical expenses minimum benefit being Ksh. 30,000
  5. Occupational illnesses minimum as from Ksh. 4,000,0000
  6. Funeral expenses minimum benefit being Ksh. 30,000.

These benefits under WIBA Insurance in Kenya are stipulated by the WIBA Act of 2007 and they can be negotiated for based on your requirements as an employer. Our older article on WIBA Insurance discusses these benefits at length.

How is WIBA insurance calculated?

WIBA Insurance in Kenya is calculated using the details below:

  1. Gross annual salaries of the employees
  2. The nature of the job/description and categories of the jobs within your organization
  3. The industry to which your business belongs.

The reason the insurer or we will ask for the above details is because of risk and also the ability to establish benefits payable under your WIBA policy and the premium chargeable of the same.

Who benefits from WIBA?

WIBA insurance in Kenya is made to provide compensation for your employees as they discharge their duties as assigned by you. Therefore, the benefits are paid to the employee. The reason why you would need WIBA insurance in Kenya is because:

A smiling person using a computer to indicate a happy employee enjoying wiba insurance in kenya b

Why get WIBA insurance?

The need for employers to get WIBA insurance in Kenya is as follows:

  1. To ensure compliance with the law and avoid penalties and paying higher damages in the event of work-related injuries
  2. Attract good employees
  3. Retain good employees
  4. Enhance and promote a healthy workforce
  5. Enhancing employee satisfaction

Who Pays for WIBA?

WIBA Insurance in Kenya is paid for by the employer as stipulated by the WIBA Act. The premiums and costs associated with this type of insurance are tax-allowable business expenses.

What is the difference between WIBA and GPA?

WIBA stands for Work Injury Benefits Act while GPA stands for Group Personal Accident Cover. The two covers provide for death and injury to employees.

The combined insurance policy of WIBA and GPA is also called WIBA Plus and this option provides a 24-hour accident cover for employees whether at work or outside work.

The difference between WIBA and Group Personal Accident is as below:

WIBAGPA
This is an occupational cover and is works only during working hours.This is a non-occupational cover and is available 24 hours.
Provides coverage within the Kenyan borders.Provides coverage worldwide
It is mandatory for all employers based WIBA Act of 2007.This is an additional benefit to employees and optional for employers
Calculate based on the annual salaries of the employees.Calculated based on the benefits an employer would need or as a percentage of the WIBA premiums.

What are the different types of GPA?

When GPA is taken together with WIBA to make it WIBA Plus, it is available in 3 types:

  1. 3 Year Benefit means the after-work cover provides a 3-year annual benefit in the event of death and permanent disability at 25% of the WIBA premiums
  2. 5 Year Benefit means the after-work cover provides 5 years of annual benefits in the event of death and permanent disability at 30% of the WIBA premiums
  3. 8 Year Benefit means the after-work cover provides 8 years of annual benefit in the event of death and permanent disability at 40% of the WIBA premiums

Is WIBA insurance a legal requirement in Kenya?

Yes, WIBA Insurance is a legal requirement provided for by the WIBA Act 2007, which states that:

An Act of Parliament to provide for compensation to employees for work-related injuries and diseases contracted in the course of their employment and for connected purposes.

http://kenyalaw.org/

What does WIBA insurance in Kenya not Cover?

What are some of the things not covered by your WIBA Insurance in Kenya?

  1. Claims arising from asbestos. Whether directly or indirectly exposure irrespective of the amount of exposure
  2. Computer general loss including but not limited to damage to computer property, legal liability of whatever nature, and consequential loss directly or indirectly caused by computer failure among others.
  3. Nuclear energy risk
  4. Accidents resulting from the use of drugs and alcohol abuse
  5. Does not cover claims arising from self-inflicted injury it suicide
  6. Claims arising from professional sports or mountaineering
  7. Claims arising from air travel unless as a fare-paying passenger

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