By Clifford Akumu
The Boda Boda operators always look over their shoulders whenever picking or dropping pillions within Nairobi’s Central Business District, conscious of one enemy who has become a lethal enemy to their economic survival. On the other hand, the City-County officers aka Askaris are never apologetic on their pillage, over the Boda Boda riders.
The Askaris have forced the riders to devise tactics of avoiding any stop within the CBD. A pillion is expected to pay for their rides prior or ensure they have the exact amount of money in hand for the ride.
But now, following a recent directive by the Treasury Cabinet Secretary requiring riders to have an insurance cover for their pillions and pedestrians has elicited mixed reactions. Insurance companies have not slacked on their job pouncing on the opportunity to expand their business to the Boda Boda riders.
One such insurance company is Minet Kenya which has launched a Public Service Vehicle Insurance solution targeting the sector.
The new Minet product dubbed ‘RaidaSure’ seeks to offer a solution to Boda-Boda riders in complying with the expected changes in the Boda-Boda transport system following the National Treasury and Ministry of Interior directives. The directive now makes it mandatory for boda-boda and tuk-tuk riders to procure a third-party insurance cover. The Ministry of Interior, on the other hand, requires players in the boda-boda and tuk-tuk business to comply with the traffic rules and regulations applicable to other motorists.
“This is an innovative bundled product that has been developed in close collaboration with the players in the Boda-Boda sector, taking into account some of the feedback we received from the end-users,” said Minet Kenya Associate General Manager in charge of Business Development Latif Wekesa. “We are upbeat that the new product will be useful for them in helping meet the requirements of the new regulations as well as exposing them to the real benefits of insurance to their businesses.”
Mr. Wekesa was speaking at a meeting convened by the company to train and sensitize boda-boda operators on the need to have insurance cover for their businesses. It is estimated that there are over 1million boda-boda operators in the country.
The riding of motorcycles has proven to be a risky affair hence mitigating such risks is prudent. Statistics from the National Transport and Safety Authority (NTSA) indicate that this year alone, by July A total of 1,682 people have lost their lives on the road compared to 1,500 who died by July 1, 2019. This is according to the latest survey by the Authority. Pedestrians still lead the pack with 576 having lost their lives.
The number of pillion passengers who have lost their lives on the roads has shot up this year whereby 124 had died by May 20th, 2019 compared to 97 who succumbed last year.
The new product offers motorcycle comprehensive cover, a motorcycle third party cover, and a hybrid motorcycle third party plus Personal Accident extension.
The comprehensive cover offers indemnity against loss or damage to motorcycles by accident means, theft, fire, malicious damage including accessories, liability to third parties and passenger liabilities arising out of use of motorcycles owned or operated by the insured and attracts a premium of 70$. With additional premiums of 10$ for Personal Accident cover for the rider can be extended. A Key feature on Personal accident cover is an enhancement of the last expense benefit to include both accidental death and natural death but subject to 3 months waiting period.
Third-party PSV cover which is mandatory required by law offers indemnity against injuries or damage to third party’s property and passenger liabilities arising out of use of motorcycles owned or operated by the insured and attracts a premium of 36$, while the hybrid third party PSV Cover offers combines the Mandatory cover and Personal Accident at a premium of 46$
Boda-boda Safety Association national Kevin Mubadi lauded Minet’s move for unveiling this new product, adding that the product resonates with members’ insurance needs and the pricing reasonably well.
“Currently most insurance companies offer covers with premiums ranging between 120$ and 150$ at any price, which is not affordable to most of our members, but we believe that with Minet’s bundled covers members will be able to pick what’s suits them and still be able to meet the requirements of the new regulations,” said Mr. Mubadi.
Wekesa noted the need for Minet to initiate discussions with various microfinance institutions to provide financing for premiums paid to make it affordable to many.
“Additionally, we want to improve accessibility through a partnership with underwriters, simplify procuring and claim process through the use of the Association, and educate boda-boda members through training and roadshows,” Wekesa said.
