Kenya Orient, a popular insurance firm, has announced that it will take Toyota Probox off its underwriting list.
The move is meant to reduce massive losses incurred under the Private Motors class.
A representative for the company confirmed the report to Kenyans.co.ke stating: "We are no longer underwriting the Probox. We will issue official communication."
The Probox is a common vehicle in Kenya, and is mostly used as a Public Service Vehicle (PSV) and by business people.
However, the Private Motors Business class has come with serious challenges for insurers due to the high number of fraudulent claims.
[caption caption="Kenya Orient Managing Director Muema Ndindi"]
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Private Motor insurance provides cover against accidental loss or damage to vehicles.
A number of car owners write off their older vehicles to get new ones.
However, there are claims that others exaggerate repair costs to factor in wear and tear.
Insurance expert Washington Ndegea stated: “Most companies taking such actions are doing so because of the losses they incur from these vehicles. Insurers are not entitled to cover all classes.”
He added that many Probox owners had taken third-party insurance policies but were using their vehicles as PSVs, meaning they were still entitled to insurance pay-outs.
[caption caption="The Toyota Probox"]
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