Kenya: Fake motor insurance claims cost up by 189%
Friday, 06 24 2016, Category: Insurance and Reinsurance, Country: Kenya
The cash involved in fake motor insurance claims more than doubled in the first quarter of the year, surging 189 per cent, the latest industry report by the Insurance Regulatory Authority indicates.
Sham motor insurance claims accounted for more than 83 per cent of the total value of the industry's reported fraud cases, at Sh52.45 million. The total amount involved in all fraud cases in the industry according to IRA records was Sh63.07 million.
The IRA report published yesterday shows fraud in the insurance industry increased by 65.3 per cent driven mainly by agents and sham motor claims. Recorded fraud cases increased from 26 over the same period last year to 43, but industry players said this could be much higher given that most go unreported or undetected.
Source: The Star