It is not practical for a consumer to question and interrogate the quality and standard of every goods bought or services offered. They purchase these goods or services based on utmost good faith. The consumer is considered the weaker link in the market place and therefore, needs protection from unethical and unfair business practices, poor quality services and goods that even could be detrimental to their health.
Who is a Consumer?
According to the Consumer Protection Act, a consumer is;
a)     a person to whom particular goods and services are marketed in the ordinary course of the supplier’s business
b)     a person who has entered into a transaction with a supplier in the ordinary course of the supplier’s business, unless the transaction is exempt from the application of this Act
c)     a user of particular goods or a recipient or beneficiary of particular services, irrespective of whether that user, recipient or beneficiary was a party to a transaction concerning the supply of those particular goods and services
d)     a franchise in terms of a franchise agreement, to the extent applicable in terms of this Act.
From the above definitions, it is very clear that a consumer is not just one who buys goods and services, but also a recipient of those specific goods and services, irrespective of them being a party to the transaction.
Consumer Protection
Various legislations that protect consumers in Kenya include Consumer Protection Law 2012, The Constitution of Kenya 2010 and Competition Act 2010.
According to article 46 of the Constitution, consumers are entitled to services or goods of reasonable quality. A consumer is also entitled to information so as to gain full benefits of the services or goods bought, safety and economic interest, protection of their health, compensation for loss or injury which could arise from the defects of the good or service.
The aim of the Consumer Protection Act is to promote fair and ethical business practices so as to protect and empower consumers. Provision for penalties is made, in case of contravention. The Competition Act also protects the consumer from misleading and unfair marketing conduct.
Protecting the Insurance Consumer
In addition to the various consumer protection legislation mentioned above, an insurance consumer is also protected under the Insurance Act and Retirement Benefits Act. The Treating Customers Fairly (TCF) guideline was released by the Insurance Regulatory Authority (IRA) whose main aim is to promote fair treatment of policyholders and beneficiaries. Companies can also use it to assess themselves and improve customer service.
TCF guideline aims to ensure that the products sold to the insurance consumer meets the quality, standard and is suitable for the customer. Companies are also expected to give clear information and advice that is suitable to the consumer before, during and after the period of the contract. IRA also intends to create a culture where insurance companies place their customers first in their dealings and are treated fairly.
IRA has a dedicated complaints department which handles complaints from policyholders. The Retirements Benefits Authority is also in the process of formulating a guideline that will focus on protecting pension protectors and will seek to ensure that consumers are treated fairly.
Conclusion
Although there are various legislations protecting the insurance consumer, the consumer also needs to be vigilant when purchasing goods or services.