Britam ups fight for insurance deal

The NHIF Building in Upper Hill, Nairobi. FILE PHOTO | NMG. 

By GALGALLO FAYO

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Summary

• The Procurement Administrative Review Board (PPARB) had on February 2 cancelled the cover to the two and instead directed the same to be awarded to UAP Life Assurance, citing irregularities in the awarding of the tender by the NHIF.
• But Britam holds that the Board’s decision is unreasonable since UAP only joined the appeal it filed as interested party and was granted orders that were never sought in the appeal.

Britam Life and Pioneer Assurance have moved to court seeking to suspend a decision by the Procurement Administrative Review Board (PPARB) that revoked NHIF’s decision to award them a multi-million-shilling civil servants life assurance cover.

PPARB had on February 2 cancelled the cover to the two and instead directed the same to be awarded to UAP Life Assurance, citing irregularities in the awarding of the tender by the National Hospital Insurance Fund (NHIF).

The Board held that at Sh797.6 million, UAP was the lowest bidder.

But Britam holds that the Board’s decision is unreasonable since UAP only joined the appeal it filed as interested party and was granted orders that were never sought in the appeal.

READ: UAP’s Sh836m civil servants insurance award suspended

The tender has since been suspended by the High Court after CIC filed a separate case  seeking to reverse the decision of the procurement agency.

“The 1st respondent (PPARB) acted irrationally by ignoring the immense public interest premised on the social benefits that accrues to the officers in the Police, Prison Service and civil servants…and their dependents…which obviously outweighs the private commercial interests,” the firms say in court papers.

Britam claims that PPARB’s direction to NHIF to award the tender within seven days is in contravention of the law, which gives aggrieved party room to seek redress at High Court within 14 days.

Further, the board is accused of reviewing the tender contrary to procurement laws since the contract was signed on January 8 and Sh435 million advanced premium released.