Kenya Orient insurance company has developed affordable accident coverage targeting mobile phone owners.

The cell phone-enabled personal accident coverage for death and permanent disability will cover the insured for 100,000 Kenyan shillings (US$1,467) at a cost of 30 shillings per day and will be activated via SMS (Short Message Service), said Virginiah Magondu, Kenya Orient's general manager

"There are more than 12 million mobile phone users in the country," Magondu said. "We need innovative products to revolutionize how insurance is sold in Kenya."

The use of SMS eliminates paperwork, brokers and sales agents, all of which raise the cost of purchasing insurance in the country. Kenya Orient is targeting the rural majority who cannot easily afford insurance.

To activate the insurance, mobile phone users will be required to send a message to 8808 with their identification number, mobile phone number and name of the beneficiary. The charge is then deducted from the user's airtime.

"The cell phone has increasingly progressed from being a mere communication tool to an attractive facilitator of transactions, and the industry should use it to increase the insurance penetration rates in the country," Magondu said.

In 2006, the Kenyan insurance sector contributed about 2.5 percent to the country's GDP, which is insignificant compared to 16 percent posted by South Africa's insurance industry, Magondu noted.

"We still have not reached many more Kenyans with affordable products, but we believe that the industry can benefit from technology," she said.