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Virtual Motor Insurance Certificates Replace Physical Certificates

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Vehicle insurance fraudsters are costing the sector billions. Insurers are now turning to technology to help tame the vice. www.businesstoday.co.ke
Insurers are turning to technology to make their services efficient. Virtual motor insurance certificates are now in the market following a roll out process that commenced in October 2019. [Photo/Insuretech]
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Virtual motor insurance certificates are now in the market following a roll-out process that commenced in October 2019 with motorcycle certificates.

The virtual certificates will run concurrently with the physical certificates until the latter are phased out by mid this year.

“Motor insurance customers should not be alarmed when they are issued with the usual physical certificate, we are phasing them out and by mid-year, we will have completed the transition,” said Birian Akwir, AKI Senior Manager in charge of General Insurance Business.

Print In Colour

The virtual motor insurance certificate appearance and details are the same as the physical certificate. The only difference will be the mode of transmission to the consumer which will be via digital channels such as e-mail.

“It is basically the same service only delivered to the customer in a more efficient manner”, added Akwir during a meeting with senior traffic officers in Nairobi.

Insurance companies are now able to conveniently issue virtual motor insurance certificates to their customers wherever they are.

Once a customer receives the virtual motor insurance certificate, they will be required to print it in colour, cut and display the certificate on the windscreen as required by law.

Customers can query the status of their virtual motor insurance through a shortcode and then follow the process as guided.

The platform will respond with information on the insuring company; the vehicle details; start and end date of the insurance; and the status, whether valid or invalid.

Instant Verification of Insurance

Speaking during the meeting, Assistant Superintendent of Police Boniface Otieno lauded the move by AKI noting that it will solve some of the challenges they face with regard to authenticating the validity of motor insurance.

“The digital certificate will help with instant verification of insurance and this will go a long way in supporting service delivery by the police.”

“Motor insurance business has been affected by increasing cases of fraud. This, coupled with other factors such as predatory pricing has seen the business struggle to make profits over the last five years,” said Akwir.

He added that the Integrated Motor Insurance Database System (IMIDS) saved the industry over Ksh40million in fraudulent claims in 2019 and this figure is expected to increase as more insurance companies share data via the system.

This shift to virtual certificates will help minimise motor insurance fraud by ensuring that only one motor insurance certificate is issued per vehicle.

Cases of double insurance, fake certificates and stolen insurance certificates will also be minimised. Customers will also be able to conveniently get their motor insurance certificates from wherever they are and at any time.

Read >> Blind But Farsighted: Meet Kenyan Visually Impaired Software Programmer

Written by
BT Reporter -

editor [at] businesstoday.co.ke

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