Today's Smart Company pull out in the Nation has this as it's cover story

In summary:

From March - New policy holders pay 7.5% premium up from 4%. If you do not have an accident within the next one year, a discount of 10% applies. In the second year, another 10% discount, etc.

The idea is to encourage safe driving thus resulting in reduced accidents (and a discount for you the driver)

What do wazuans think?

In as much as Insurance companies have been making losses (very few have actually made a profit), I think 7.5% is too high. I suspect that if they go forward with it, many guys will ground their cars.
The average reasonable aged car (clay court's infamous white toyota corolla :) ) is valued probably around 500k (a rough estimate). 4% was 20k, 7.5% takes this to
37500. That's an extra 1400+ bob per month.

Methinks that at some point, some drivers may opt to just pay 7.5% continuously, and drive like maniacs.

I applaud the idea behind the new policy, but think that 7.5% is too high for most motorists.

@Tuvok,
Does this apply to public vehicles??

even better, fewer junk matatus on the road driving carefully!

@Kularaha,
I don't believe higher premiums will deter scrap matatus on our roads...Hell,they will pass the premiums to "consumers".

Funny thing is that even after getting the discount for like 7 years, they say that the premium will never go below 4%, in short the Insurance companies have increased the premium costs for all the drivers irrespective of how careful you are, higher premiums will only drive many people into making fake claims to get back the high amounts they've been paying!!!!

Do you think too many kenyans are driving? Maybe the other side of it is more people will opt not to drive. Because, truthfully, there are just too many cars on the road, and increasing by the day! Or will this be like another parking fee increase? Hakuna tofauti?

true on the premiums..no matter how old or unmaintained the car is...

@KulaRaha actually I think we'll get more junks on the road - now that more people won't be able afford to maintain their vehicles.

The Increase is to alot 4% to 7.5% is almost 100% increase. the insurance companies and IRA should think of better ways of cutting cost and improving their profits and not going back to the Mwananchi who is already overburdened by so many taxes and high cost of living.

....I am in deep shit... This is unbelievable!!! How can the insurance be almost the cost of another car?