GA insurance Limited has struck off a number of vehicle models from their comprehensive insurance cover, citing unsustainability in settling claims.
Toyota Probox, Toyota Succeed, Toyota Passo, Toyota Porte and Toyota Sienta are the Toyota models that will be expelled from the cover and whose prices fall below Ksh.1 million. Others likely to be affected are all Suzuki models that fall within the price range.
“After a comprehensive review of our motor private book, and the loss trends, we wish to communicate that there are vehicles whose usage has been misemployed and, therefore, have proven to be a challenge when settling claims,” said GA in a letter.
“We will therefore not underwrite the below models on comprehensive basis to ensure smooth running of business and maintain an excellent client experience.”
The insurance giant has attributed the move to the high number of accidents among the vehicle models, occasioned by the usage of cars listed as private for public transport.
“A significant number of motorists driving the listed vehicles are prone to causing accidents. This has subjected our business to losses in respect to the listed vehicles. And many people who seek insurance for the vehicles apply for private covers, only to use the vehicles for public transport, which is riskier. At times, you’d come across a compensation claim, only to realise that the vehicle, listed for private use, was transporting passengers at a fee during the accident,” said a GA representative.
A comprehensive insurance cover compensates motorists for an array of events, including theft, fire and vandalism.
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