Policyholders get Heritage cashback on low use of cars

Half of the motorists covered by Heritage Insurance have cut their daily use of cars as well as commutes, prompting the firm to reduce the premiums paid by customers as part of a cashback policy for reduced risk exposure.

According to Godfrey Kioi, Heritage Insurance Kenya managing director, the company’s telematics devices fitted in vehicles on the AutoCorrect motor insurance policy shows that 46 percent of insured motorists drove less in April.

This is compared to their monthly driving range over the previous six months, an occurrence which is attributed to reduced movement and most people working from home.

“Given the reduced exposure, Heritage Insurance is offering a cashback to all AutoCorrect policyholders. This is based on each individual’s level of reduced driving in April 2020 compared to their normal driving range,” said Mr Kioi.

Technology has helped reveal patterns from the change in lifestyles following steps to curb coronavirus including working from home introduced by companies, dusk-to-dawn curfew, cessation of movements in and out of five counties and limits to the number of passengers per vehicle.

These changes are affecting how business is done including the shift to e-commerce, cashless transactions and now insurance cover.

Mr Kioi said Covid-19 phase has raised a lot of questions for conventional insurance products. Kenyans are concerned that while their cars are stationary, insurers are still collecting premiums from them at normal rates.

“Usage and miles-based insurance provide a solution that allows us to peg pricing on vehicle use and driver behaviour and most importantly, cushion our clients in these tough economic times,” he said.

According to Google Maps mobility reports, movements into places of work reduced by 22 percent in early April compared to the period before positive cases of coronavirus were announced.

Mobility trends for places like public transport hubs such as bus and train stations have also declined by 39 percent, reducing the exposure to accidents, especially at night.