It
is emerging that many commuters in Machakos town may be unknowingly traveling
in uninsured public service vehicles.
Here,
furious motor cyclists popularly known as boda boda are up in arms against
some insurance brokers for selling fake insurance stickers.
The
stickers have flooded Machakos town and it environs and there is fear that the
cyclists may lose a lot of money.
Commuters
have urged the governing body to embark on a nationwide exercise to fish out
fake insurance brokers.
Investigation
by Weekly Citizen reveals that the insurance companies have transferred the
cost of their inability to be innovative to motorists.
The
pay-as-you-drive insurance product could be an ideal cover for motorists, who
do not use their vehicles every day yet they pay a comprehensive cover that has
a daily cost whether one uses their vehicle or not.
Recently,
Machakos police top brass warned motorists to be vigilant when purchasing
insurance certificates for their vehicles due to a rising number of fake
stickers on sale.
Some
of the insurance companies and fake insurance brokers fail to understand the
role of Association of Kenya Insurers which is a members’ association for
the insurance companies in Kenya.
Some
of the victims want the police and the insurance sector to stop these scams
perpetuated at motorists’ expense.
“In
fact, we came to realise that some of our colleagues have been suffering
without knowledge,” a victim told this paper.
The
recently launched insurance fraud investigations police unit increasingly
unearthed use of fake stickers in this sector.
Investigation
shows that traffic officers and the Kenya Association of Insurance are
jointly investigating the source of the fake stickers and forged insurance
certificates.
Traffic
police have since warned motorists to be vigilant when purchasing insurance
certificates for their vehicles due to a rising number of fake stickers on
sale.
The
officers across the city are under firm instructions to scrutinise insurance
stickers displayed on vehicles to identify the fake ones.
The
Association of Kenya Insurers has already alerted them of thousands of
motorists who were using fake insurance certificates sold to them by
unscrupulous brokers.
According
to AKI, insurance fraud leads to increase in the cost premiums and this has
limited the number of people who can afford insurance.
The
main intention is to have as many Kenyans as possible afford insurance but it
is also a threat to the existence of insurance companies.
Insurance
fraud is so high such that there are some people who have made a career out of
stealing from insurance companies.
It
is estimated that 40pc of all claims paid by insurance companies in Kenya are
fraudulent.
The
collapse of more 10 insurance companies in Kenya in the recent past is also
attributed to fraudulent claims.
The
Insurance Regulatory Authority said the country should have specific laws that
penalise insurance related crimes.
The
Kenya Police Anti-Fraud Insurance Unit was formed last year in response to the
escalating cases of fraud in the insurance industry.
So
far, the unit has been able to unearth a racket involving fake insurance
stickers for public service vehicles.
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