Garissa boda boda operators call for action against fraudulent insurance firms
He explained how some insurance companies were reluctant to provide policy documents to clients, reducing their chances of claiming compensation later.
Boda boda operators in Garissa want the government to notify the public about unregistered insurance companies to avoid falling prey to fraudsters.
Speaking during a campaign dubbed Policyholders' Compensation Fund Mtaani, the chair, Maxwel Otieno, called upon regulators to create awareness to help policyholders avoid fraudulent deals by unauthorised insurance firms.
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"We also need to be alerted about insurance companies that are collapsing to increase public confidence in the sector," he said.
Joseph Kamwana, a boda boda rider, said the public needs to have trust in insurance companies.
He explained how some insurance companies were reluctant to provide policy documents to clients, reducing their chances of claiming compensation later.
Rosemary Kavili, Deputy Director Corporate Policyholders Compensation Fund. (Issa Hussein)
The boda boda operators were educated on the mandate and functions of the Policyholders Compensation Fund (PCF) in order to boost public confidence in the insurance sector.
The Deputy Director of Corporate Communications, Rosemary Kavili, called upon the public to come forward and lodge their claims for funding with PCF if they have insurance policies with any firms under statutory management.
"We have funds to help in the payment of claimants from insurance companies that have collapsed," she said.
She noted that the majority of policyholders with insurers under statutory management had yet to submit their claims due to a lack of awareness about PCF’s role.
"This has forced us to launch a six-day PCF Mtaani campaign targeting the media, boda boda riders, matatu owners, and other stakeholders, including Deputy County Commissioners, chiefs, the business community, KUPPET, KNUT, women and youth groups, religious groups, and co-operatives, to sensitise them," she said.
Garissa boda boda riders sensitized on the Policyholders Compensation Fund at Garissa hotel. (Issa Hussein)
She emphasised that the fund is currently committed to compensating members of the public who submit claims with four companies: BlueShield Insurance Company Limited and United Insurance Company, which are currently under liquidation, and Xplico Insurance Company and Invesco Insurance Company, which are under statutory management.
Kavili stated that the maximum amount for compensation is currently gazetted at Sh250,000 per claim.
She said the boda boda and matatu sectors were specifically targeted for the awareness campaign, as they are high consumers of insurance services and frequently involved in road accidents.
Garissa Deputy County Commissioner Sebastian Okiriang urged boda boda riders to be law-abiding citizens by observing road safety regulations.
He also encouraged them to take up comprehensive insurance policies due to the high rate of road accidents in the sector.
"Boda boda is a critical transport sector, and they need to secure insurance policies that will cater for their customers," he said.
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