This archive report was first published on 26 August 2021.
Kenyan motorists with modified vehicles are facing a new challenge as insurance companies crack down on alterations that compromise safety and performance.
Underwriters have intensified a crackdown on modifications, including engine tuning, alloy wheels, and height spacers, which are deemed to compromise vehicle safety and performance.
UAP Insurance Company has informed its customers that it will no longer insure vehicles that have been modified to run on liquefied petroleum gas (LPG) without manufacturer's approval.
“Such modifications lower safety precaution standards and aggregate our exposure to liabilities in case of an accident,” said George Odinga, UAP Insurance general manager for underwriting and reinsurance.
ICEA Lion General Insurance senior motor assessor Peter Mzungu said insurers now have to insert modifications as exclusions in vehicle insurance contracts to avoid disputes with customers.
Underwriting losses from insuring motor vehicles jumped by 126 percent to a record high of Sh6.86 billion in 2019, with private vehicle insurance returning losses for the eighth running year.
