Five vehicle models, Probox, Sienta, Succeed, Passo and Porte have been denied comprehensive covers by insurers, on basis of losses due to “misuse of vehicles”.
GA Insurance said it had also stopped issuing cover for all models of Suzuki cars valued at below Sh1 million.
The insurance firm in October notified their clients on their plan to discontinue issuing of comprehensive covers for Toyota Probox, Succeed, Sienta, Passo and Porte, claiming that they had created problems during the settling of claims due to their misuse.
“After a comprehensive review of our motor private book and the loss trends, we wish to communicate that there are vehicles whose usage has been misemployed and therefore have proven to be a challenge when settling claims,” GA Insurance said in the October 21 letter to its business partners.
The insurers said to have been recording huge losses in their general insurance business over the past few years, as the termed vehicles were mostly commercially used and “misused”.
The company, therefore, took steps towards rectifying the causes of huge claim settlements.
“We will, therefore, not underwrite the models on a comprehensive basis to ensure the smooth running of the business and maintain an excellent client experience,” the letter by GA Insurance’s head of Bancassurance, Kenneth Kagira stated.
Most of the vehicles that the insurer wants to exclude from its comprehensive cover have been largely used for commercial purposes in Kenya, with Toyota Probox popular for public transport business, transportation of goods such as Muguka, a khat (miraa) variant and other agricultural produce.
The insurer argues that the uses the vehicles have been put to have increased claims they launch, leading to losses for its business and problems when it comes to claims settlement.
