A cartel of lawyers, valuers and traffic police officers has been blamed for the growing public service vehicle (PSV)insurance fraud in the country, with players in the industry estimating annual losses at over Sh3.2 billion.

Some matatu owners believe the cartel also loops in doctors and judges to fake medical reports and give award hefty awards against unsuspecting PSV insurers.

As a result, a high number of insurance companies have over the years kept off PSVs, saying the venture is too risky and full of fraud, with some in the past pushed into insolvency.

Over time, insurance companies have been forced to establish investigative departments run by criminologists and private investigators to probe claims. One investigator shared an experience with the Nation.

In 2021, a complaint was raised at the Insurance Regulatory Authority (IRA) that Invesco Assurance Company Limited had failed to pay a client money awarded to her by a magistrate’s court in Eldoret following an “accident”.

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The CEO of the company was summoned by the commissioner and on arrival handed to the complainant— who claimed she had been involved in an accident in 2014 and awarded over a million shillings in damages—some cash.

“The lady was paid Sh50,000 for transport back home as I kicked off the probe which largely included verifying the authenticity of the documents used to file the case as well as the report filed at Eldoret police station following the accident to establish its nature,” Daniel...

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