News Africa01 Mar 2021

Kenya:Motor insurers to issue digital insurance policies only wef 1 March

01 Mar 2021

The Association of Kenya Insurers (AKI) has announced that the issuance of hardcopy motor insurance certificates will be terminated wef today.

The move is in line with the shift to digital certificates aimed at minimising insurance fraud by ensuring the issuance of only one motor insurance certificate per vehicle. In addition, it will minimise cases of double insurance, fake certificates, and stolen insurance certificates, reported The Star.

The digital insurance policy will also play a key role in assisting traffic officers to solve some of the challenges they face with regard to authenticating the validity of motor insurance. It will help with instant verification of insurance and this will go a long way in supporting service delivery by the police.

Under the new procedures, motorists would print out the digital certificate and attach it to their windscreen. The authenticity of the certificate can be verified by scanning the attached certificate via the AKI app or dialing a short code.

The digital policy programme was first introduced in October 2019 with motorcycle certificates. It is now extended to all vehicles that ply Kenyan roads.

The Integrated Motor Insurance Database System (IMIDS) saved the industry over KES40m ($365,000) in fraudulent claims in 2019, a figure which is expected to increase as more insurance companies share data via the system.

A survey by the AKI shows that 22% of motor vehicle insurance policies cannot be verified while another 12% simply do not exist in the books of underwriters despite payment of premiums for the cover.

 

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