CIC Insurance targets matatus with loan repayment for accident vehicles

CIC Insurance is targeting matatu saccos with an insurance package covering loan repayments for vehicles taken off the road to be repaired after accidents.

The insurer will also offer a tracking facility for vehicles signed under the insurance package to monitor their movement.

The group also targets heavy commercial vehicles that are covered for operations across the Comesa region.

It provides cover against accidental collision or overturning, theft, fire, riot and malicious damage, floods, and third party liabilities.

“We are looking to work together with entrepreneurs and enable them realise their goals by creating tailored products and partnerships with other businesses in a bid to empower Kenyans and boost the country’s economic growth,” said Joe Ngige, CIC Group manager in charge of branch operations.

He was speaking after signing an agreement for the cover with Thika-based Drivers and Conductors (DRICON) Sacco.

Insuring public service vehicles has in the past proved problematic for insurers due to the large volume of claims in the loosely regulated sector, leading to some insurers folding up.

United Insurance, Invesco and Blue Shield Insurance were placed under statutory management in 2005, 2008 and 2011 respectively, largely due to the weight of PSV claims.

Road accidents have however fallen due to the speed limit enforcement and improvement in the Judiciary.

Invesco was revived after the Matatu Owners Association bought into the firm, which emerged from statutory management in January 2010 after intense restructuring, and has since paid off all old claims.

Insurance is viewed as a potential growth sector because of low penetration rates with less than six per cent of Kenyans having any form of cover.

This has led insurance firms to look for new areas for expansion as well as launching more niche products targeting high growth potential customers.