{"id":6166,"date":"2024-11-29T05:39:09","date_gmt":"2024-11-29T02:39:09","guid":{"rendered":"http:\/\/www.magaripoa.com\/?p=6166"},"modified":"2024-11-29T05:39:09","modified_gmt":"2024-11-29T02:39:09","slug":"the-day-insurance-company-refused-to-insure-subarus-and-bmws","status":"publish","type":"post","link":"https:\/\/www.magaripoa.com\/gari\/the-day-insurance-company-refused-to-insure-subarus-and-bmws\/","title":{"rendered":"The day insurance company refused to insure Subarus and BMWs"},"content":{"rendered":"

Five years ago, AIG Kenya Insurance has wrote to all its agents to stop accepting applications for cover for BMW and Subaru cars valued below Sh1.5 million.<\/span><\/p>\n

In a letter addressed to all its intermediaries, the insurer wanted such requests referred to its headquarters.<\/span><\/p>\n

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\u201cAs a measure to control our increasing loss ratios on auto, we write to inform you that with immediate effect, we shall not accept underwriting of any more new business for Subaru and BMW vehicles valued Sh1.5 million and below. These instructions take effect immediately,\u201d reads the letter dated May 6 2015.<\/span><\/p>\n

The limit set by the insurer essentially meant the majority of used Subaru cars imported into the country would not get AIG cover because they were either equal to or below the value set.<\/span><\/p>\n

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AIG management confirmed those conditions, saying the company had arrived at the decision due to the increasing number of write-offs from the two vehicle brands.<\/span><\/p>\n

\u201cMost of the Subaru claims are usually write-offs, meaning we have to buy new vehicles every now and then,\u201d noted the company.<\/span><\/p>\n

The cost of parts also became prohibitive.<\/span><\/p>\n

\u201cThe cost of parts for these vehicles is very high, considering they have to be imported most of the time. VAT is very high.\u201d<\/span><\/p>\n

The company blamed the Kenyan motor insurance industry for not factoring in general lifestyles of drivers in determining premium rates as is the case in developed markets.<\/span><\/p>\n

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This story appeared in the Nairobi News<\/a><\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Five years ago, AIG Kenya Insurance has wrote to all its agents to stop accepting applications for cover for BMW and Subaru cars valued below Sh1.5 million. In a letter addressed to all its intermediaries, the insurer wanted such requests referred to its headquarters.   \u201cAs a measure to control our increasing loss ratios on…<\/p>\n","protected":false},"author":1,"featured_media":6167,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"jetpack_seo_schema_type":"","cybocfi_hide_featured_image":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1975],"tags":[],"class_list":["post-6166","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-road-safety"],"jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pej6K6-1Bs","jetpack_likes_enabled":true,"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.magaripoa.com\/gari\/wp-content\/uploads\/2015-subaru-wrx-sti-magariopoa.jpg?fit=1229%2C686&ssl=1","_links":{"self":[{"href":"https:\/\/www.magaripoa.com\/gari\/wp-json\/wp\/v2\/posts\/6166","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.magaripoa.com\/gari\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.magaripoa.com\/gari\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.magaripoa.com\/gari\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.magaripoa.com\/gari\/wp-json\/wp\/v2\/comments?post=6166"}],"version-history":[{"count":0,"href":"https:\/\/www.magaripoa.com\/gari\/wp-json\/wp\/v2\/posts\/6166\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.magaripoa.com\/gari\/wp-json\/wp\/v2\/media\/6167"}],"wp:attachment":[{"href":"https:\/\/www.magaripoa.com\/gari\/wp-json\/wp\/v2\/media?parent=6166"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.magaripoa.com\/gari\/wp-json\/wp\/v2\/categories?post=6166"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.magaripoa.com\/gari\/wp-json\/wp\/v2\/tags?post=6166"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}