The Insurance Regulatory Authority (IRA) has urged Kenyans to desist from making fraudulent insurance claims as the practice was hurting the economy, keeping premiums high and slowing down claims settlement pace.
The regulator indicated that the malpractices that included false motor accident (injury) claims, stealing by agents, conspiracy to defraud and fraudulent motor theft claims were inflating insurance premiums in Kenya by up to 25 per cent.
Players in the sector have been decrying huge losses associated with fake claims, especially in general insurance (motor insurance and medical insurance).
Making a presentation during a forum held in Nakuru and aimed at educating matatu operators on the nature of insurance products, contracts as well the policy holders' rights and obligations, IRA Corporate Communications Officer Ms. Rosemary Kavili however noted that cases of fake claims have been on a steady decline over the last five years as the industry stepped up ways of curbing fraud by enhancing transparency and disclosure of information during claims.
One in every five insurance claims made is fraudulent, according to the Insurance Regulatory Authority (IRA).
Ms. Kavili observed that insurers have in the past raised concern that cases of fraud in the form of multiple insurance contracts and claims on a single-vehicle are rampant.
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