The Association of Kenya Insurers is working on a data system dubbed Integrated Motor Insurance Data System (IMDS) that is targeted at curbing fraud cases revolving around the motor vehicle insurance industry.
IMIDS will enable insurance companies in the country to share information including names and vehicle registration to be used in pricing of premium for the parties involved.
The platform will be linked to the Kenya Revenue Authority, the ministry of Transport and the Kenya Police to provide accurate information.
Association of Kenya Insurers chairman Stephen Wandera said the system will work as a chronic” claimants especially to those who are fond of requesting for compensation from the company either as a result of reckless driving or fraud.
He further noted that through IMIDS, insurers will be able to get names of vehicle owners easily, especially those seeking accidental claims compensations.
Drivers will be categorised according to their accident history. Those with low casualty rates will be awarded discounts by underwriters. In addition, registration of vehicles will be done to reduce the theft cases in the industry and easy ways of detecting the vehicles that have been written-off and all uninsured automotives.
Wandera concluded by saying the fictitious compensation claims in the industry in addition to those who don’t stick to traffic rules and regulations in the public service vehicles have led to increase in premium rate but IMIDS is set to offer a perfect solution.
According to the association, the motor vehicle insurance industry has been experiencing fraudulent compensation claims of approximately 40 percent of those paid.
At the same time, the second hand cars bought from individuals or companies has had fraudulent registration of vehicles with unscrupulous dealers using written- off cars to secure claims from other insurance companies.
Through the system, the association of insurers will be able to track vehicles that have been deregistered and the newly registered.
Experts say the new device will minimise the high rate of accidents in the country, drivers will be more cautious on the road by observing traffic rules to avoid high premium rates as a result of reckless driving.
Kenya’s traffic department released a report on road accidents late last year that found half of road death accidents in the country is as a result of careless driving.
Around 3,200 people lost their lives from road accidents indicating an increase in the number of fatalities as compared with the previous year, which recorded 3056 casualties.
