The Association of Kenya Insurers (AKI) has commenced the roll out of the second phase of issuing virtual motor insurance certificate in a move that is meant to curb fraud in the industry.
This phase includes private motor vehicle, commercial and Public Services Vehicles (PSV).
“The virtual motor insurance will run in parallel with the current printed certificates,” AKI Chief Executive Officer Mr Tom Gichuhi announced in a public notice.
When it launched the first phase in September this year, the insurance industry umbrella lobby body said that the digitisation of the insurance certificates would break an elaborate motor vehicle fraud scheme that has been bleeding the industry of millions of shillings through fake multiple claims. Digitisation will also improve efficiency.
“This shift to virtual certificates will help curb motor insurance fraud by ensuring that only one motor insurance certificate is issued per vehicle,” Gichuhi said.
Cases of double insurance, fake certificates and stolen insurance certificates have been reported on several occasions in the past.
“The virtual certificates will also save insurance companies the cost of physically delivering the certificates to their customers.”
The virtual motor insurance certificate appearance and details will remain the same as 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, according to Gichuhi.
Insurance companies will now be able to conveniently issue the motor certificates to their customers via digital platforms. Once a customer receives the virtual motor insurance certificate, they will print it in colour, cut and display the certificate as required by law.
Customers will also be able to query the status of their motor vehicle insurance by dialing *352#. Customer can also verify through the AKI Verification App available for download from both Apple Store and Goggle Play Store.
The first phase involved all motor cycle certificates. The second phase will affect all other motor insurance certificates. This will run in parallel with the current certificates until mid-next year after which, full transition to the virtual insurance certificate will be completed. All other processes such as valuation and claims processing will not be affected.
Under the new regime, the virtual insurance certificate appearance and details will remain the same as those in the certificate currently in use.
Insurance companies will issue the virtual certificate to their customers from their platform known as the AKI Vehicle Insurance Certificate (VIC) Issuance.
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.
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