Insurers launch virtual motor certificate to curb fraud

Insurers have rolled out a virtual motor insurance certificate in efforts to curb rampant cases of insurance fraud.

In a notice in a local daily, the Association of Kenya Insurers says full transition to virtual motor insurance issuance, which is being implemented in two phases, is set for mid-next year.

A survey by the Association of Kenya Insurers indicated that 22 percent of motor vehicle insurance policies could not be verified while another 12 percent of the covers simply did not exist in the books of underwriters despite payment of premiums for the cover.

To stem this, the insurers have developed virtual motor insurance certificate that will among others allow insurance firms to issue insurance certificates to clients via digital platforms.

A notice by the Association of Kenya Insurers reads in part …”once a customer receives the virtual motor insurance certificate; they will print, cut and display the certificates as required by law.”

In efforts to increase market penetration and growth, insurance companies make it as easy as possible for customers to buy insurance products, which have often created loopholes for fraud through fake certificates and stolen insurance certificates.

Adoption of virtual technology is expected to seal some of these loopholes as customers will be able to query the status of their motor insurance “through the AKI verification App available for download from both Apple store and Google Play store.’’

The roll out will be carried out in two phases, with the first phase targeting motorcycles that takes effect immediately.

The second phase…”will affect all other motor insurance certificates. This will run in parallel with the current certificates until mid-next year which, full transition to the virtual insurance certificate will be complete’’.

However, all other processes such as validation, and claims processing will not be affected by the transition, including the motor insurance certificate appearance and details.

  

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