GA Insurance Limited has indicated that they will no longer be providing comprehensive covers for at least six motor vehicle models in Kenya, citing unacceptable losses from the policies.
The blacklisted car models include Toyota Probox, Toyota Succeed, Toyota Sienta, Toyota Passo, Toyota Porte and all Suzuki models valued at less than Sh1 million.
A comprehensive cover offers to compensate for losses from multiple risks including theft, fire, vandalism and damage to the vehicle.
The company is likely to have stopped comprehensive covers for these models mainly due to their use as public service vehicles as opposed to personal vehicles, breaching the policy requirements. More often than not, when a car is used as a P.S.V, it is likely into accidents as it is constantly on the road, which leads to losses for the insurance company.
The insurer had this to say in a statement, “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. We will therefore not underwrite the below models on comprehensive basis to ensure smooth running of business and maintain an excellent client experience.”