Sanlam General Insurance has introduced road assistance services for private motor vehicle clients on comprehensive insurance contracts as it seeks to grow its customer base.
Services to be offered to motorists include on-the-spot accident assessment, free post-accident support, towing and an optional add-on for a courtesy car and taxi service to complete the journey.
The move will also help curb fraud. The private motor vehicle insurance business is riddled with huge claims, hurting players in this segment.
Loss ratios — measuring the fraction of premiums paid out as claims — in this business line rose to a new high of 78.75 percent in the quarter ended September, according to the Insurance Regulatory Authority (IRA) data.
The absolute claims in the review period stood at Sh10.8 billion and plunged the players into a combined loss.
“Motor private incurred the highest losses at Sh3.25 billion followed by motor commercial and engineering classes with losses of Sh1.26 billion and Sh273.75 million respectively,” the IRA said in the report.
Most insurers rely on police reports and evidence from the customer in processing claims, which make it difficult to track cases of fraud.
Sanlam’s on-spot accident support will dispatch teams to the scene of the accident. Their role will be to conduct an assessment, direct local authorities to the scene, fill in the digitised accident report form and secure statements from witnesses at the scene.
In the event towing services will be required, Sanlam will dispatch a towing truck to the location of the accident.