OPINION: Why every Kenyan motorist should verify their insurance

Grace had no reason to believe anything was wrong. She had renewed her motor insurance through an agent she trusted, received what appeared to be a genuine insurance certificate, and continued driving to work every day without a second thought.

Like most motorists, she assumed that once the premium was paid and the certificate issued, she was fully insured.

Then one morning, during a routine traffic stop in Nairobi, everything changed. After checking her details, the traffic officer informed her that her insurance was not valid.

Confused, Grace immediately produced the certificate displayed on her windscreen. It clearly indicated that she had annual cover.

Yet the verification system showed something completely different: the policy had been cancelled three months earlier.

Standing by the roadside, she dialled *352# to verify the details herself. Within seconds, the results confirmed the officer’s findings. The insurance she believed was protecting her no longer existed.

Later, Grace discovered what had happened. The agent who had renewed the policy had collected the full annual premium but only activated one month’s cover before cancelling the policy and pocketing the balance. The certificate he issued still reflected twelve months of insurance, leaving Grace completely unaware that she had been driving uninsured for months.

Grace’s story is not unique. An increasing number of motorists in Kenya are only discovering that they have fake or invalid motor insurance after being stopped by traffic police, involved in an accident, or attempting to file a claim. In many cases, they are not deliberately breaking the law.

They are ordinary Kenyans who paid for insurance in good faith and believed they had done everything right.

This growing trend should concern all of us. Fake motor insurance is more than an insurance industry problem. It is a consumer protection issue, a road safety issue, and ultimately a matter of public trust.

Motor insurance exists for a reason. At the very least, every vehicle on Kenyan roads must carry third-party insurance to ensure innocent road users are protected if an accident occurs.

When a vehicle is driven without valid insurance, whether knowingly or unknowingly, that protection disappears.

The consequences extend far beyond the driver. Passengers, pedestrians, cyclists, and other motorists may struggle to obtain compensation after an accident.

Drivers may find themselves personally liable for medical expenses, property damage, and legal claims that could run into hundreds of thousands or even millions of shillings. What many assumed was a routine insurance purchase can quickly become a devastating financial crisis.

Perhaps the most worrying aspect of this problem is that fraudsters have become increasingly sophisticated.

Some issue entirely fake certificates, while others activate genuine policies for only a short period before cancelling them and pocketing the remaining premium.

The documents handed to motorists continue to indicate annual cover, creating a false sense of security until something goes wrong.

For years, motorists have relied almost entirely on trust: trust in the agent, trust in the paperwork, and trust that once payment is made, everything else is taken care of. Unfortunately, trust alone is no longer enough.

Verification must become part of responsible vehicle ownership. Just as motorists routinely check tyre pressure before a long journey or ensure their driving licence is valid, verifying the authenticity of their insurance should become second nature.

It takes less than a minute, but could prevent enormous financial and legal consequences.

Technology has made this easier than ever. Through the AKI Bima Yangu App or by dialling *352#, motorists can independently confirm whether their policy is active and genuine.

Whether insurance is purchased through an agent, broker, dealership, SACCO or directly from an insurer, verification provides an extra layer of protection against fraud.

Consumers can go a step further by insisting on dealing with licensed intermediaries, requesting official policy documents, retaining payment confirmations, and, where possible, paying premiums directly to insurance companies through authorised payment channels.

These simple precautions create a clear transaction trail and make it much harder for fraudsters to manipulate policies.

The insurance industry also has a responsibility to continue strengthening consumer education, improving digital verification systems, and working closely with regulators and law enforcement agencies to identify and prosecute fraudsters. But enforcement alone will never be enough.

The strongest defence against insurance fraud is an informed consumer. Grace now verifies her insurance every time she renews her policy and encourages friends and family to do the same.

Her experience left her with one lesson she says she will never forget: having an insurance certificate does not necessarily mean you are insured.

As motorists, we need to stop treating verification as an optional extra. It should become as routine as fastening a seat belt before every journey. Because when it comes to motor insurance, the most important question is no longer whether you bought insurance.

It is whether the insurance you bought is genuine.

The author, William Kiama, is the General Manager of General Insurance Business, Association of Kenya Insurers