Minet Kenya has launched Public Service Vehicle Insurance Solution targeting the Boda-Boda sector.
The new product dubbed ‘RaidaSure’ seeks to offer a solution to Boda-Boda riders in complying with the expected changes in the Boda-Boda transport system following the National Treasury and Ministry of Interior directives. The directive now makes it mandatory for boda-boda and tuk tuk riders to procure a third-party insurance cover. The Ministry of Interior, on the other hand, requires players in the boda-boda and tuk tuk business to comply with the traffic rules and regulations applicable to other motorists.
“This is an innovative bundled product that has been developed in close collaboration with the players in the Boda-Boda sector, taking into account some of the feedback we received from the end users,” said Minet Kenya Associate General Manager in charge of Business Development Latif Wekesa. “We are upbeat that the new product will be useful for them in helping meet the requirements of the new regulations as well as exposing them to the real benefits of insurance to their businesses.”
Mr. Wekesa was speaking at a meeting convened by the company to train and sensitize boda-boda operators on the need to have insurance cover for their businesses. It is estimated that there are over 1million boda-boda operators in the country.
The new product offers motorcycle comprehensive cover, a motorcycle third party cover, and a hybrid motorcycle third party plus Personal Accident extension.
The comprehensive cover offers indemnity against loss or damage to motor cycles by accident means, theft, fire, malicious damage (including accessories), liability to third parties and passenger liabilities arising out of use of motor cycles owned or operated by the insured and attracts a premium of Kshs 6,576. With additional premiums of Kshs 1,000/=, Personal Accident cover for the rider can be extended. A Key feature on Personal accident cover is enhancement of the last expense benefit to include both accidental death and natural death (but subject to 3 months waiting period.
Third party PSV cover which is mandatory required by law offers indemnity against injuries or damage to third party’s property and passenger liabilities arising out of use of motor cycles owned or operated by the insured and attracts a premium of Kshs 3,560, while the hybrid third party PSV Cover offers combines the Mandatory cover and Personal Accident at a premium of Kshs 4,560
Boda-boda Safety Association national Kevin Mubadi lauded Minet’s move for unveiling this new product, adding that the product resonates with members insurance needs and the pricing reasonably well.
“Currently most insurance companies offer covers with premiums ranging between KSh 12,000 and KSh15, 000 at any price, which is not affordable to most of our members, but we believe that with Minet’s bundled covers members will be able to pick what’s suits them and still be able to meet the requirements of the new regulations,” said Mr. Mubadi.
Mr. Wekesa said Minet was in discussions with various microfinance institutions to provide financing for premiums payment to make it affordable to many.
“Additionally, we want to improve accessibility through partnership with underwriters, simplify procuring and claim process through the use of the Association, and educate boda-boda members through trainings and road shows,” Mr. Wekesa said.
“We have also made the product available on digital platform through *202# to expand accessibility throughout the country,” Mr. Wekesa added.
Some of the underwriters Minet is working in partnership with include Monach Insurance and Pioneer Assurance.