Although the Bodaboda Safety Association of Kenya supports the move by Treasury to ensure regulation in the sector, they are worried insurers may take advantage of the directive.
According to the lobby group representing riders in Kenya, the state needs to clearly outline the proposed insurance cover as members are already paying through their teeth for the already mandatory comprehensive cover.
“Most of our members are currently suffering with current comprehensive cover which the insurers are not paying our claims,” the group’s national chairman Kevin Mubadi said.
During Thursday’s budget reading, Treasury CS Henry Rotich proposed to amend the Insurance (Motor Vehicle Third Party Risks) (Certificate of Insurance) Rules to require all passenger-carrying boda bodas and tuk-tuks to have an insurance cover for passengers and pedestrians.
“Despite the benefits this mode of transport has proven to be very risky to the riders, passengers and even pedestrians,” Rotich said.
He added the accident victims, who are mostly from the bottom of the economic pyramid, are left to seek financial assistance for treatment from friends and relatives since boda bodas are not insured.
According to Mubadi, most underwriters are already delaying claims for up to two years with some even refusing to pay claims, taking advantage of vulnerable riders.
“The comprehensive premiums are very expensive at the moment, we will not support the idea because it will only impose more suffering to our already poor members and stretch them further on their little income,” he said.
His sentiments were backed by Patrick, a boda boda rider in Roysambu, Thika Road who said he was very sceptic about the move saying it was just another opportunity for insurance firms to take advantage of riders who are already struggling to make ends meet.
“It would be nice for a change to have someone else handle the hospital bill when an accident occurs. My only worry is how much will the insurers ask us to pay?”
The lobby group wants the payment period for policy claims to be reduced to 30 days and that premiums are determined with the knowledge that boda boda riders cannot afford expensive covers.
The chief executive for the Association of Kenya Insurers was unavailable for comment when the Star reached out for underwriters' take on the budget proposal.
