By Edna Mwende
Boda boda riders in the country now have a reason to smile after three insurance companies jointly launched an insurance cover tailor made for the riders.
The insurance cover dubbed RaidaSure was jointly launched by Minet Kenya, Pioneer Assurance and Monarch Insurance with an article in the Business Daily reporting that Minet Kenya will oversee the initiative.
This follows the National Treasury and Ministry of Interior directive which now makes it mandatory forboda-bodaand tuk tuk riders to secure a third-party insurance cover.
The insurance cover will see riders pay Ksh3,560 for third party Public Service Vehicle (PSV) cover that caters for injuries or damage to third party property and passenger liabilities arising from a boda boda accident.
RaidaSure, according to the news report by the Business Daily also has a hybrid third party product where riders pay the mandatory and personal accident cover with an annual premium price of Ksh4,560.
With additional premiums of Ksh1,000, Personal Accident cover for the rider can be extended. A Key feature on Personal accident cover is enhancement of the last expense benefit to include both accidental death and natural death.
“This innovative bundled product accessible via a premium mobile text service USSD *202# was developed in close collaboration with the boda boda riders’ representatives,” said Minet Kenya Associate General Manager for business development Latif Wekesa as quoted by the Business Daily.
He added that Minet was in discussions with various micro-finance institutions to provide financing for premiums payment to make it affordable to many.
The local daily also reported that Boda-boda Safety Association National chairman Kevin Mubadi acclaimed Minet’s RaidaSure cover, saying it had been rightly priced.
Mr. Wekesa said they were in talks with microfinance institutions to provide upfront financing in premium payments and that there’s need to train and sensitize boda-boda operators on the need to have insurance cover for their businesses.
According to Business Daily, Treasury intends to make third party cover mandatory for boda boda riders, an issue that has prompted a court case by politicians.