Insurance is supposed to offer peace of mind, ensuring financial protection in case of unforeseen calamities. Yet, an alarming rise in fake insurance covers, especially motor insurance has left many unsuspecting drivers exposed to financial loss, legal trouble, and devastating consequences.
This growing menace not only hurts individuals but also undermines public trust in the insurance industry whose uptake in Kenya is 2.3 percent—far below the global average of seven percent.
Like other forms of insurance, motor vehicle insurance faces the serious threat of fake insurance covers more so with the advent of digital insurance certificates as they are often procured or issued to unsuspecting vehicle owners and drivers by rogue insurance agents.
Various fake insurance cover operations have been spearheaded by the leading public service vehicles insurer; Directline Assurance Company in collaboration with the police and National Transport and Safety Authority have revealed that most motorists driving on fake insurance stickers procured the same through rogue means.
Fraudsters use forged documents, set up fake agencies, and even create counterfeit platforms to lure victims with unbelievably low premiums.
Many drivers, eager to save money, unknowingly fall into this trap, only realising the fraud when they attempt to make a claim—by then, it’s too late.
The consequences of driving with fake insurance are severe. Beyond financial losses, victims face legal penalties, including hefty fines or even vehicle impoundment. In case of an accident, they are left to cover repair costs, medical bills, and third-party damages out of pocket. This not only ruins lives but also creates a burden on legal and insurance systems.
While fraudsters are the main culprits, some responsibility falls on vehicle owners who fail to verify their policies. However, the biggest accountability lies with regulatory bodies and the insurance industry.
More stringent measures, public awareness campaigns, and accessible verification systems are needed to curb this issue.
Motorists must take proactive steps to protect themselves by procuring insurance covers from reputable providers, verifying policy authenticity, and reporting suspicious deals can go a long way in combating this menace. Fake insurance is not just an individual problem—it is a systemic issue that requires collective action.
The rise of fake insurance cover is a wake-up call. It’s time for authorities, insurers, and consumers to work together to end these fraudulent schemes before more lives are affected.
The writer is the Head of Investigations at Directline Assurance
