Garage owners oppose new insurance rules

Business
By Cyrus Ombati | Jun 02, 2017
Mechanics at work

Garage operators have protested against a new rule that requires insurance firms to supply them with spare parts for their clients’ motor vehicles.

The group said on Thursday the move would not guarantee quality of spare parts supplied to them.

Under the umbrella of Kenya Motor Vehicle Repairers Association (Kemra), the garage owners said the new directive would negatively impact their businesses.

Kemra Chief Executive Mercy Kyande urged the Insurance Regulatory Authority (IRA) to review the new rules to ensure the spare parts supplied to them would be of high quality.

Traditionally, garages source the spare parts from suppliers of their choice and later receive payment from insurance firms.

Ms Kyande said the move was a variation of the current repair contract where the repairer supplied spare parts. “We note that the model needs to be adopted in a holistic manner,” she said. 

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