This archive report was first published on 2 July 2019.
On July 2, 2019, Minet Kenya, an insurance broker, announced the launch of a Public Service Vehicle insurance solution targeting the Boda-Boda sector.
The new product, dubbed 'RaidaSure,' aims to offer a solution to Boda-Boda riders in complying with the expected changes in the motor cycle transport system following National Treasury and Ministry of Interior directives.
According to the Ministry of Interior, Boda-boda and tuk tuk riders were directed to procure a third-party insurance cover in June. The Ministry also requires players in the boda-boda and tuk tuk business to comply with the traffic rules and regulations applicable to other motorists.
Minet Kenya's Associate General Manager in charge of Business Development, Latif Wekesa, stated, '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.'
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, 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.
The product bundles include:
- Motorcycle comprehensive cover with a premium of Sh6,576
- Motorcycle third party cover with a premium of Sh3,560
- Hybrid motorcycle third party plus Personal Accident extension with a premium of Sh4,560
With an additional premium of Sh1,000, Personal Accident cover for the rider can be extended. A key feature of the Personal Accident cover is the enhancement of the last expense benefit to include both accidental death and natural death.
Minet Kenya is working with various microfinance institutions to provide financing for premiums payment to make it affordable to many. The company also aims 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.
Some of the underwriters Minet Kenya is working in partnership with include Monach Insurance and Pioneer Assurance.
