The Association of Kenya Insurers (AKI) has developed a virtual motor insurance certificate to curb insurance-related fraud in the industry.
The insurance industry umbrella lobby said Monday that the digitisation of the insurance certificates will break an elaborate motor vehicle fraud scheme that has been bleeding the industry of millions of shillings through fake multiple claims. Digitisation is also expected to increase efficiency.
The new system takes effect immediately for motorcycles.
“This shift to virtual certificates will help curb motor insurance fraud by ensuring that only one motor insurance certificate is issued per vehicle,” AKI said in a statement.
“Cases of double insurance, fake certificates and stolen insurance certificates will be eliminated. The virtual certificates will save insurance companies the cost of physically delivering the certificates to their customers.”