Association hails new motor vehicle insurance claims deal

Kenya Motor Repairers Association (Kemra) has welcomed the revised standards and benchmarks for motor vehicle insurance claims, agreed on between the lobby and insurers.

On Wednesday, Kemra and the Association of Kenya Insurers (AKI) and other players signed a Memorandum of Understanding (MoU) detailing the revised claim charges for Kemra accredited motor vehicle garages. Other signatories to the MoU include Motor Assessors Association of Kenya (MAAK) and the National Association of Kenya Investigators (NAKI).

Kemra Chairman Bernard Ngore said the new agreement, if honoured, will not only popularise, but enhance insurance penetration in the country and reduce fraud. He said it will also help eliminate fraud cases, where a number of insurance companies lose billions of shillings annually. ''Today we urge the insurance fraternity to be honoring the promises they give out including the MoU we are signing today. Be fair, do not select what suits you but what is fair to all,'' said Ngore in a statement.

AKI Executive Director Tom Gichuhi said the new arrangement will assist to structure service charges and timelines. "The review of the standards is in line with inflation in the economy and new realities in the motor industry and will benefit all," said Gichuhi.

Ngore expressed hope that the MoU will obligate AKI members to release millions of shillings they owe a number of Kemra garages. "Some members are grappling with huge financial deficits, which insurance companies are yet to settle even with existence of strong provisions like settlement of invoices is 30 days in the past MoUs," explained Ngore.