APA Insurance has joined the league of prominent insurers who are blacklisting certain vehicle models from accessing comprehensive cover.
In a press release, APA Insurance has blacklist up to 28 vehicle models from getting comprehensive cover.
These vehicles include Toyota Wish, Toyota Vitz, Toyota Probox and Toyota Fielder. Honda Stream, Honda Fit, and Honda Airwave. Suzuki Swift, Mazda Demio and Mazda Axela. Nissan Tiida, Nissan Vanette, and Nissan Wingroad.
Insurer stops comprehensive cover for 5 Toyota models, Suzuki cars
The insurer argues that these vehicles are being abused by their owners.
“Like many other underwriters, we do not insure vehicles which can be used to carry passengers. These have to be insured as taxis/buses,” said Ashok Shah, the chief executive of APA’s parent firm Apollo Investments Limited. “The models are blacklisted due to the wrong usage of the subject vehicles.”
The ban follows a similar action by GA Insurance which announced a fortnight ago that it will now longer provide comprehensive coverage for all Suzuki car models that are priced at below Sh. 1 million.
At the same, the insurer will no longer provide insurance coverage for five Toyota models that include Toyota Porte, Toyota Sienta, Toyota Probox, And Toyota Succeed.
“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,” said Kenneth Kagira, the GA Insurance business development manager.
The blacklisted vehicles will now only be covered under third party insurance package.
While the third-party insurance cover is cheaper and covers only third-party damages, the comprehensive car insurance Kenya cover offers wider coverage and is hence, slightly expensive.
Comprehensive motor policies cover both personal damages while third-party liabilities, standalone third-party car insurance cannot be used for own personal damages.
Third-party car insurance offers cover against any legal liability to a third party caused when you are at fault. It covers any damage or injury caused by the insured, to another person or property.