KENYA PLANS CENTRAL DATA SYSTEM TO CURB INSURANCE FRAUD

The Association of Kenya Insurers has said that it is working on a database system – the Integrated Motor Insurance Data System – that will receive information on all insured vehicles in the country. Association of Kenya Insurers chairman Steve Wandera said that the new system would act as a deterrent to so-called chronic claimants, who hopped form insurer to insurer, making frequent claims either through reckless driving or through fraud. He said that the system would also allow the association of insurers and others in the industry to track motor vehicles that had been de-registered, as well as newly registered vehicles. Vehicle owners who had made several claims would have to pay higher premiums, while claim-free customers would see their premiums fall. Mr Wandera said that "fictitious claims and non-adherence to traffic regulations have influenced the steady rise in premiums especially in the public service motor category. This is one of our solutions to this setback".