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AIG Kenya launches terror cover

Saturday October 5 2013

 Destroyed cars at the Westgate mall in Nairobi last Thursday. AFP

Destroyed cars at the Westgate mall in Nairobi last Thursday. AIG Kenya has launched terror cover. AFP 

By SIMON CIURI

AIG Kenya has joined a list of firms covering losses linked to terrorist attacks under its motor insurance.

The insurer’s broker, Clarkson Insurance Brokers, Thursday launched the product as debate continues on the cover for motorists whose vehicles were flattened during the Westgate terrorist siege.

“This is the first time AIG Insurance is underwriting this product under motor cover. Previously it was being provided under other assets such as house and medical cover,’’ Milkah Mugo, the Clarkson Insurance Brokers managing director, said during the launch.

It will cover injuries incurred during terrorism acts, the owner of the car, and occupants.

Up to 20 insurance companies offer terrorism covers but restrict themselves to the vehicle, a source from the Association of Kenya Insurers (AKI) told the Business Daily.

Terrorism is increasingly becoming a global threat to business and insurers were introducing related covers or repackaging existing policies to reflect the new demand.

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Since the 1998 bombing of the US Embassy in Nairobi, Kenya has been on a terror alert, which has become worse since the Kenya Defence Forces pursued the militant group al-Shabaab into Somalia.

“Westgate mall attack has opened up people on the need for terrorism covers,’’ said Tom Modi, the Business Development Manager at Clarkson Insurance Brokers.

This story first appeared in Businessdailyafrica.com