Britam General Insurance has introduced a new product to make comprehensive motor insurance more affordable for Kenyan motorists.
The option, dubbed Britam Motiflex, allows customers to pay premiums in flexible instalments that suit their budgets, enabling wider access to comprehensive coverage.
Many motorists struggle to pay an upfront lump sum amount, (which can run into hundreds of thousands of shillings) for their premiums, with some resorting to financing from banks to keep their vehicles on the road.
"We understand that the annual premium for comprehensive insurance can be a significant upfront cost," said James Mbithi, acting Chief Executive and Principal Officer at Britam General Insurance.
"Britam Motiflex is designed to make comprehensive coverage more accessible by offering flexible payment options. This empowers our customers to prioritise their safety on the road without compromising their budget, especially during these challenging economic times," he added.
Britam said the payments would be processed with flexible payment options, including monthly, semi-annual and quarterly, in addition to the annual 60-day 3-instalment option currently available.
Additionally, customers can start with an initial payment of as slow as Sh4,000 and enjoy the convenience of manageable monthly premiums.
“By opting for Britam Motiflex, customers will not sacrifice any of the benefits associated with Britam's comprehensive motor insurance. They will continue to receive complete coverage for accidental damage, fire, theft, malicious damage, and third-party liabilities,” the insurer said.
Insurance premiums offer a specified amount that customers agree to pay in exchange for a cover that guarantees them financial compensation for damages and losses incurred.
Insurers rely on these premiums to provide financial compensation to policyholders when claims arise.
The level of premiums, however, depends on the value of the insured item, with higher-value items costing more to insure. For instance, when covering a vehicle, insurers consider factors such as the claim history, the car’s make and model, its value, and sometimes even the driver’s age and gender.
Section 156 of the Insurance Act obligates insurers to only recognize risks coming from customers whose premiums they have received.
“No insurer shall assume a risk in Kenya in respect of insurance business unless and until the premium payable thereon is received by the insurer,” states the Act.
