Five vehicle models, Probox, Sienta, Succeed, Passo and Porte have been denied comprehensive covers by insurers, on basis of losses due to “misuse of vehicles”
GA Insurance said it had also stopped issuing cover for all models of Suzuki cars valued at below Sh1 million.
The insurance firm in October notified their clients on their plan to discontinue issuing of comprehensive covers for Toyota Probox, Succeed, Sienta, Passo and Porte, claiming that they had created problems during the settling of claims due to their misuse.
“After a comprehensive review of our motor private book and the loss trends, we wish to communicate that there are vehicles whose usage has been misemployed and therefore have proven to be a challenge when settling claims,” GA Insurance statement read.
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The insurers said to have been recording huge losses in their general insurance business over the past few years, as the termed vehicles were mostly commercially used and “misused”.
The company therefore took steps towards rectifying the causes of huge claim settlements.
“We will, therefore, not underwrite the models on a comprehensive basis to ensure the smooth running of the business and maintain an excellent client experience,” the letter by GA Insurance’s head of Bancassurance, Kenneth Kagira stated.