Stakeholders in the insurance sector have singled out vehicles commonly used by cab-hailing apps and Toyota Probox for delisting from insurance policies over high accident rates.
This after GA Insurance Limited announced it has ceased covering some Toyota and Suzuki car brands to save itself from huge losses in the general insurance division when settling claims, citing accidents.Excluded Toyota brands include Toyota Probox, Succeed, Passo, Porte and Sienta.
All Suzuki models whose value falls below Sh1 million have also been blacklisted from comprehensive cover by the insurer, which most likely targets Suzuki Alto and Swift.
“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 Insurance
Business Development Manager Kenneth Kagira in a letter dated 21st October. “We will therefore not underwrite the below models on a comprehensive basis to ensure the smooth running of the business,” Mr Kagira added.
The move by GA Insurance could impact the sales of the manufacturers of those brands since new customers are set to be more cautious while those in the tax-hailing business could be forced to change their policy to cover higher risks, signalling more operation costs.
