Direct Line Insurance has called for fully cashless matatu payment as a way of stopping fraudulent claims.
Speaking during a staff end year party, Direct Line Head of Sales Chris Katiwa noted that the insurance company had spent too much money as payment of claims to frauds.
Further, he noted that the amount paid to fraudulent individuals as insurance claims took a significant percentage of the Ksh3 Billion that they paid in settlement in 2023.
According to Katiwa, cashless payment will ensure that all passenger records are taken ensuring that only genuine claims are paid by insurance organizations.
Also, he noted that the claims are made by ambulance chasers who present genuine supporting documents adding that it is a strong cartel in business.
“A bus carries 60 passengers, an accident happens, and we get over 80 claims. It is not possible,” he stated.
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Insurance Company Suggests Way Forward
Subsequently, Katiwa stated that the only way to end the fraud was for matatu industry players to fully adopt online payment.
According to the Head of Sales at Direct line Insurance, this will help insurance companies have details of passengers in a vehicle in case of an accident and accurately determine who to compensate.
“When passengers board your bus from one destination to the other, especially during the festive season, you need to know who they are. You must keep their details.
“If something happened today, we are able to collect the data of those who are injured and then weed out other players who come to the table, yet they are not invited,” he explained.
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How the Cashless System Will Take Effect
At the same time, the Regional Manager James Mwiri noted that the move will streamline the compensation process.
Also, Katiwa explained that the adoption could happen using M-Pesa pay bill services. According to him, the pay bills of different matatu operators can be linked to the vehicles.
Once a customer pays, the matatu company is able to store data and information of the passengers in a particular vehicle.
Therefore, when an accident occurs, the matatu organization can easily share the data with the insurance company for compensation.
“Let us adopt the cashless system. Once you pay your fare through your phone, and it is paid to a till linked to a vehicle.
“In case of an accident, we will be able to get all the people who paid the fare. If you are a joy rider in a matatu and a n accident happens, the insurance company has no business compensating you,” he explained.
