Tough times for injured NYS personnel as state fails to release Sh7 billion

Injured National Youth Service personnel and families of those who died in service are facing untold suffering following the government’s failure to release Sh7 billion owed to them.

Senators have raised an alarm that, despite being covered under the NYS insurance scheme, the affected families continue to languish without compensation.

“I seek a statement from the Health Committee on a matter of national concern regarding the delay by the defunct National Hospital Insurance Fund scheme and its successor, the Social Health Authority, to settle claims under the NYS insurance scheme,” Bungoma Senator David Wafula said.

The scheme, initially managed by NHIF, was taken over by SHA after the health reforms.

However, Wafula said several NYS personnel and their families remain unpaid, with claims amounting to Sh7.07 billion.

“Several personnel of NYS and their families have borne untold suffering due to the failure by the defunct NHIF scheme and its successor, SHA, to pay their claims amounting to Sh7.07 billion,” he said.

Wafula raised the matter on the floor of the House, where he petitioned the Health Committee to probe the issue.

He said the arrears have accrued under Civil Servants and National Youth Service enhanced group life, last experience, work injury benefits and group personnel accident insurance scheme in the last four years.

According to the lawmaker, the National Treasury recently disbursed Sh1.48 billion to SHA to facilitate part settlement of the claims.

However, SHA is yet to release these funds, worsening the situation for beneficiaries.

In the probe, the committee is seeking to establish the steps the Social Health Authority is taking to facilitate the prompt settlement of the outstanding payments.

The claims include 1,004 deaths amounting to Sh4.21 billion; 1,026 funeral claims amounting to Sh207.3 million and 1,267 injury claims amounting to Sh2,64 billion relating to NYS personnel.

“The committee should explain the inordinate delay by the Social Health Authority to release the Sh1.48 billion disbursed by the National Treasury for part settlement of the claims, including the timelines for the same,” Wafula said.

Further, the panel will enquire whether SHA will factor accrued interest when settling the outstanding claims and if so, provide details on the applicable interest.

The authority will provide timelines for the full settlement of all outstanding claims under the scheme.

The government has rolled out its first comprehensive insurance cover for civil servants and the National Youth Service.

“The launch of the enhanced insurance cover with the inclusion of Work Injury Benefits and Group Accident Cover will not only have a profound impact on the well-being of civil servants and their families, enhance public service motivation and productivity, but also boost the general growth of our insurance industry,” the then Treasury CS Ukur Yatani said.

Under the new scheme, civil servants and employees of the National Youth Service were entitled to a comprehensive insurance cover with a total annual premium of Sh6.07billion per year.

INSTANT ANALYSIS

Following elaborate consultative meetings with relevant stakeholders including the Public Service ministry among others, it was agreed that in addition to enhancing the existing Group Personal Accident (GPA) cover and Work Injury Benefits Act (WIBA) cover, the provisions be extended to include a comprehensive Group Life cover to cater for all causes of death including death arising from critical illnesses such as COVID-19. The provisions were extended to all civil servants and employees of the National Youth Service.