Directline Assurance has issued a directive requiring all insured Public Service Vehicles (PSVs) to transition to cashless fare platforms, including M-Pesa.

This transformative initiative, effective from February 1, 2024, is strategically aimed at addressing fraudulent claims related to passenger injuries and deaths, enhancing transparency, and contributing to the overall evolution of the insurance landscape.

Directline Assurance, renowned for its specialization in motor vehicle insurance, provides two primary policy types: Third Party Only (TPO) and Comprehensive Cover.

The directive responds to prevalent challenges, including “fraudulent injuries” and “forged evidence” in PSV insurance, prompting a shift towards a more secure and transparent payment system.

The comprehensive directive mandates that all PSVs insured by Directline Assurance register with a cashless passenger manifest system.

The company, taking a central role, will provide the necessary technology for the consolidation of this system, operationalized through digital fare payment.

Fintech companies facilitating cashless transactions, such as M-Pesa, will receive a one percent fee from transactions, further emphasizing the collaborative nature of this transition.

Rooted in the potential to significantly minimize fraudulent claims, the decision to mandate cashless fare platforms aligns with Directline Assurance’s vision.

The company aims to utilize a digital passenger manifest system to verify third-party claims, offering concrete evidence of claimants’ presence in the PSVs involved in accidents.

As PSV operators navigate this transition, inevitable challenges and adjustments arise, encompassing access to technical support, initial costs, and concerns related to unbanked and underbanked users.

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Despite these challenges, the long-term benefits, including reduced instances of bribery with law enforcement and enhanced financial transparency, underscore the advantages of embracing cashless transactions.

Consequently, training and support for operators become pivotal elements for a smooth implementation.

Directline Assurance places significant emphasis on ensuring accessibility and ease of use for commuters, aligning with the industry’s goal to enhance service quality.

Addressing concerns and feedback from passengers holds paramount importance in fostering a positive perception of the impending cashless fare system.

The integration with M-Pesa and other payment platforms underscores the pivotal role of technology in implementing the cashless fare directive.

Ensuring the security and reliability of transactions emerges as a key consideration to build trust among operators, commuters, and stakeholders. Beyond streamlining fare collection, technology contributes to reducing instances of fraud and corruption within the PSV sector.

Adherence to existing transport and payment regulations stands as a cornerstone of Directline Assurance’s directive. Engaging with regulatory bodies becomes imperative to align the initiative with broader industry standards, addressing legal and privacy concerns associated with the transition comprehensively.

Directline Assurance recognizes the importance of collaboration with other insurers and PSV companies, highlighting the necessity of standardization in cashless fare systems to create a cohesive ecosystem.

Sharing best practices for fraud prevention further contributes to building a resilient and accountable PSV insurance landscape.

A robust communication plan outlined by Directline Assurance aims to keep all stakeholders informed, with public awareness campaigns playing a vital role in educating both PSV operators and commuters about the benefits and processes involved in the transition.

Managing public relations and perception becomes integral in shaping a positive narrative around the cashless fare initiative.

The move towards cashless transactions in PSV insurance reflects a broader shift in the industry, aligning with global trends in insurance transformation.

By reducing fraudulent claims, this initiative anticipates a more streamlined, technology-driven insurance sector in the future, with innovative technologies and human-centered strategies steering the evolution.