Insurer boosts discipline among matatu operators

By Patrick Beja

After breathing life into a collapsed insurance firm, Matatu Owners Association (Moa), says adherence to traffic rules will make their business profitable.

Moa says the concept of taking in matatu owners as policyholders and shareholders is aimed at raising the level of discipline among operators on the roads and minimise claims to Invesco Assurance Company, revived last January.

Moa and Invesco Assurance national chairman Mr Simon Kimutai says matatu owners are embracing self-regulation in the transport sector since the firm was revived.

"Matatu owners adhere to road safety rules and follow up accidents whenever they occur to eliminate fraudulent claims," he says.

He noted that adherence to road safety rules has cut down the number of accidents since they revived Invesco Assurance last January.

False claims

Addressing policyholders in Mombasa recently, Kimutai explained that in the past, Invesco and six other insurance companies closed down after ambulance chasers and other fraudsters made false claims because policy holders were not keen on following up accidents.

"We are now dealing with an organised group with shares in the company. It is more professional," Kimutai noted.

He said revival of Invesco has renewed hopes of policy holders and claimants of the company who were at risk when the firm collapsed. "We recently paid claims to a desperate woman who lost her hand and she has now built a home. There is hope among policy holders and claimants," he said.

Invesco Assurance managing director Geofrey Njenga said they have so far underwritten Sh300 million new business in the first seven years of operations and have recorded growth.

"We have registered growth and we expect to underwrite Sh700 million new business by January next year when our first financial year ends," Njenga says.

He noted that there was excitement in the matatu industry following the revival of the insurance firm sparking rapid growth.

Njenga said analysis of accident claims, which were taken over from the collapsed firm indicated that 60 per cent were fraudulent and would not be honoured.

In the last four months, he said, Sh60 million liabilities have been settled.

The revived firm inherited a Sh600 million in liabilities, he explained.

"We are still analysing claims as they come, but most of those we have received so far are not genuine," he said.