This archive report was first published on 18 May 2020.
On May 18, 2020, Heritage Insurance announced a reduction in motor premiums for its policy holders.
According to the company, data collected through telematics devices fitted in vehicles on its Auto Correct motor insurance policy showed that 46% of insured motorists drove less in April compared to their monthly driving range over the previous six months.
The reduced driving was attributed to the Covid-19 pandemic restrictions, which led to most people working from home and reduced movement.
As a result, Heritage Insurance will offer a cashback to all Auto Correct policy holders based on each individual's level of reduced driving in April compared to their normal driving range.
"This Covid-19 phase has raised a lot of questions for conventional insurance products," said Heritage Insurance Kenya Managing Director Godfrey Kioi. "Usage and miles-based insurance provides a solution that allows us to peg pricing on vehicle use and driver behaviour."
