40% of motor vehicle insurance policies in Kenya seems fraudulent

The Kenyan insure tech company Bismart conducted a study on 146 people settled in Nairobi. The latter revealed that despite having paid approved intermediaries for their motor covers, nearly 40% of the subscribers hold fake car insurances.

The research showed that 22 percent of motor vehicle insurance policies could not be verified. Another 12 percent of the covers simply did not exist in the books of the underwriters. In addition, almost 3% of underwritten insurances were classified as unpaid by the insurers despite providing the subscribers with an insurance sticker. Ultimately, although the customers had paid for and held certificates for comprehensive and collision damage covers, 1% of the policies were registered as 3rd party insurances.

The study conducted on 25 insurance companies shows that the problem emanates from the lack of supervision of intermediaries by the insurance holders and the authorities.

The insurance fraud is believed to undermine 8-10% of the turnover of local companies.