Get insurance cover for rainy day, boda boda riders urged

Informal sector workers such as boda boda and matatu operators should take up insurance cover against unforeseen circumstances, the Insurance Regulatory Authority (IRA).  

The advice comes amid concerns of slow insurance uptake and high personal suffering due to unmitigated tragedies.

IRA communications officer Rosemary Kavili says they are targeting boda boda and matatu operators (right) who can manage to pay small premiums.

Speaking during a meeting with the media, Kavili said they have launched a county-based programme dubbed ‘Bima Mashinani’ to increase insurance cover. So far, the country’s uptake of insurance stands at 3 per cent, she noted, adding that lack of knowledge of insurance products was a major barrier.

“There are also misconceptions that insurance is expensive and a luxury, besides low trust and negative beliefs about associated bad luck,” she added.

Abudo Qonchoro Mamo of Policyholders Compensation Fund (PCF) said members of companies under statutory management will be entitled to a maximum claim of Sh250,000.

He said they have started paying claims for three firms under their management, including Resolution Insurance, after failing to revive them.