Home Insurance EDITORIAL: Digital insurance timely

EDITORIAL: Digital insurance timely

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The move to issue motorists with digital insurance certificates to curb misuse of vehicle is timely.

Cases of drivers using their vehicles for purposes not stated in their insurance cover is common and costs the sector a lot of money. Traffic police officers have had to get in touch with insurance companies to ascertain if a certificate is genuine or not. A process that can easily be abused by some corrupt officers, insurance agents and employees.

Increase in fraud has over the years hurt insurance firms’ profitability while keeping premiums high and slowing down claims settlement pace. For instance, in 2018 alone, the Insurance Regulatory Authority (IRA) blocked Sh310.48 million fraud incidences, mostly from motor vehicle owners and insurance agents.

The new regulations will also ensure that insurance cover taken by the different categories covers adequately the would be victims in the event of an accident.

The traditional classes were public service, commercial service, private vehicle and motorcycle. This had created room for the insured to apply for one insurance cover and use it for different purposes, leaving road users exposed.

Even with the new measures in place, sector players need to embrace technology further to cut off corrupt individuals who use dubious means to steal money from insurance firms and unsuspecting Kenyans.

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