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 that were agreed on between them and insurers.

On Wednesday, this week, KEMRA and the Association of Kenya Insurers (AKI) alongside other players signed a memorandum of understanding (MOU) containing details of the revised claim charges for KEMRA accredited motor vehicle garages.

 

Kenya Motor Repairers Association (KEMRA) Chairman Bernard Ngore (left) exchanges Memorandum of Understanding (MoU) documents with deputy Chairman of Association of Kenya Insurers (AKI) Asok Ghosh shortly after the signing of the MoU at AKI head office in Nairobi yesterday.

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 honored, will not only popularize, but enhance insurance penetration in the country and reduce fraud.

He said it will also help eliminate fraud and losses, 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 suites you but what is fair to all,’’ said Ngore in a statement yesterday.

During the signing ceremony of the MOU, 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 insurers, insureds and the service providers,” 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.