Insurers roll out digital cover certificates to curb fraud

The new system takes effect immediately for motorcycles. FILE PHOTO | NMG 

In Summary

• Digitisation is also expected to increase efficiency.
• The new system takes effect immediately for motorcycles.
• Under the new regime, the virtual insurance certificate appearance and details will remain the same as those in the certificate currently in use.

By BRIAN NGUGI
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The Association of Kenya Insurers (AKI) has developed a virtual motor insurance certificate to curb insurance-related fraud in the industry.

The insurance industry umbrella lobby said Monday that the digitisation of the insurance certificates will break an elaborate motor vehicle fraud scheme that has been bleeding the industry of millions of shillings through fake multiple claims. Digitisation is also expected to increase efficiency.

The new system takes effect immediately for motorcycles.

“This shift to virtual certificates will help curb motor insurance fraud by ensuring that only one motor insurance certificate is issued per vehicle,” AKI said in a statement.

“Cases of double insurance, fake certificates and stolen insurance certificates will be eliminated. The virtual certificates will save insurance companies the cost of physically delivering the certificates to their customers.”

Under the new regime, the virtual insurance certificate appearance and details will remain the same as those in the certificate currently in use

“The only difference will be the mode of transmission to the consumer which will be via digital channels such as e-mail,” said AKI. “Once a customer receives the virtual motor insurance certificate, they will print it and display the certificate as required by law.”

Insurance companies will issue the virtual certificate to their customers from their platform known as the AKI Vehicle Insurance Certificate (VIC) Issuance.

Customers will download an app known as AKI Vehicle Insurance Certificate (VIC) Verification from where they will be able to query and verify the status of their insurance, said AKI.

The roll out of the certificates will be carried out in two phases. The first phase will be all motorcycle certificates.

The second phase will run parallel with the current certificates until mid-next year after which, the transition to the virtual certificates will be completed.

Motor private class was the highest loser in the general insurance business in 2017 after posting a loss of Sh2.74 billion, AKI reports show.