Motor Insurance covers automobiles in Kenya. This included motor vehicles used for private and commercial, and cycles which included motorcycles and Tuk-Tuks, as well as special vehicles such as tractors. Motor insurance covers the risks of property damages and bodily harm caused by the use of motor vehicles.
In this article we are going to briefly discuss the following:
- Classification of Motor Types for Insurance Categories
- Types of Motor Insurance
- Determinants of Insurance Cost
- Factors to Consider When Buying Motor Insurance
- Frequently Asked Questions on Motor Insurance
- Get your Private Motor Insurance Online Now Today!
Classification of Motor Vehicles for Motor Insurance
Motor Vehicles are classified as follows as per the First Schedule of the Third Party Only Act and as per AKI on insurance of motor insurance certificates:
| Class A | Vehicles used for Carrrying fare paying pasengers , public and private hire (Matatu, Buses , Taxis and Public hire vehicles) |
| Class B | Commercial Vehicles e.g Lorries, Pickups ,School Buses and Institutional Vehicles |
| Class C | Private Cars – Vehicles used for socila, domestic and pleasure purposes including use in connectionn with your business. |
| Class D | For Motor cycles and motorised three wheelers Motor Cycles , Motor Cysles for carrying passengers are marked PSV |
Types of Motor Insurance in Kenya
In Kenya, there are three different classes of Motor Insurance Types:
Third-Party-Only Insurance
This is the mandatory minimum requirement to drive on Kenyan roads as stipulated by the Motor Vehicles Third Party Risks Act.-(CAP 405) of the laws on Kenya.
Third-party-only insurance covers the following:
- Third-party bodily injury and death
- Third-party property damage
Third-party-only insurance only covers other persons – the third party and does not cover the driver, owner, or the vehicle itself. This means that with this cover as the owner or driver, you are at risk of not being compensated for accidental bodily damages or death in the unfortunate occurrence. The cover that can complement TPO cover is a Personal Accident cover, click here to learn more about Personal Accident Insurance.
Third-Party, Fire, and Theft Insurance
Under this insurance policy, it covers third-party risks and in addition, it covers for the loss or damage of the insured person’s motor vehicle arising from theft or fire.
Comprehensive Insurance
A comprehensive motor insurance cover is a policy that covers the third parties, fire, and theft risks. In addition to these, it covers accidental loss or damage and malicious damage to the insured vehicle
Determinants of Motor Insurance Premium Pricing
Premium is the price that an insured person pays to an insurance company in exchange for the transfer of the risks.
In Kenya, most insurance companies have a standard rate for Third Party Only insurance coverage. Comprehensive insurance cover on the other hand is charged at a percentage rate, this rate is based on a number of factors:
- The Value of the Car: the cost or valued amount by a motor valuer.
- Age of the Car; this will be based on the year of manufacture of the car.
- Type of Use: based on how the vehicle is used, premium may be priced differently.
- The Make and Model of the motor vehicle.
- The Claims History of the insured. A bad history marks one a riskier client and they may be charged a higher premium.
Factors to Consider When Purchasing Motor Insurance
When looking for Motor Vehicle insurance for your Private car, Matatu, Bus, or other categories of vehicles, you need to consider a number of factors before settling on the insurance company to purchase insurance cover from.
1. Value of the vehicle
The premium to be paid is based on the value of the vehicle where a comprehensive motor insurance cover is to be sought. The value can be based on the market value or a figure you give; however, the insurance company will often go with a motor valuer report. If you would like to get your motor vehicle valued, you can reach out to our team to get a reference letter to get the valuation done from our panel of valuers at discounted rates.
2. Type of Policy to Purchase
Amongst the available motor insurance available in the Kenyan market, what type of insurance cover are you to buy? The common one is third-party-only and comprehensive insurance.
3. Your Budget
Remember, it’s mandatory to have insurance coverage before you can drive a motor vehicle on Kenyan roads. Depending on your budget, you can determine which intermediary is affordable to purchase an insurance cover from.
Some Insurance companies offer installment payments for Insurance premiums or you can get an Insurance Premium financing (IPF) to pay the premium.
4. Other Factors
These are factors such as the minimum premium set by insurance companies, the maximum age limit, and the use of the vehicle. Insurance companies based on their factors may give you an option to only get a specific type of insurance coverage. For instance, on age, the vehicle may be too old -the base year of manufacture – for an insurer to cover it on comprehensive insurance.
Frequently Asked Questions of Motor Insurance
What is Excess?
This is the first amount that an insured person must bear. It is imposed to discourage small claims and make the insured more responsible.
What is Excess Protector?
As the name suggests this is an amount paid initially on top of the Premium to waiver requirements to up up the first amount on a claim.
Does comprehensive insurance Cover my car in case of riots?
No, you will need to have an excess protector that covers for Political violence and acts of terrorism (PVT)
What is PLL in PSV insurance
PSV Insurance for Matatu, Buses, Motor Cycles, and Tuk Tuk is Passenger Legal Liability, which is an amount to cover legal costs in case of a passenger claim. Passenger ferrying vehicles insurance includes a PLL that is a figure multiplied by the number of passengers the vehicles carry.
Which vehicles require to have a PLL?
This as passenger carrying vehicles that include: Matatu, Tours Vans, Taxi Hailing Apps e.g Ubber,
Does Third Part Insurance Cover Me as Driver and Family?
No, you need to take up a Personal accident cover to cover for bodily damages or disability arising out of an accident.
What is a COMESA Yellow Card?
This is a scheme by a group of 21 African States that allow motorist passage within their jurisdictions by producing the yellow card as proof of minimum third-party motor insurance required by laws in force of the countries.
What is the Validity of a Motor Insurance Cover?
This will depend on the time frame when the insurance certificate is being generated. The Cover can be valid for one month for a One-month Insurance Certificate or for one year for an annual cover.
Can I cancel a Motor Insurance Cover?
You can cancel an insurance policy before the lapse of time. The insurance company then refunds premiums based on a pro-rata rate for the number of days utilised.
Affordable Motor Insurance, Get cover online now today!
At Anziano Insurance Agency, we have partnerships with a pool of leading insurance underwriters in Kenya offering motor insurance. We are in a position to offer and generate for you the Motor Insurance Certificate on time swiftly at any time any moment.
Reach out to our team on our contacts or initiate a WhatsApp chat from our WhatsApp line.
Conclusion
Motor insurance coverage is mandatory insurance that you must have before you can use any motor vehicle on Kenyan roads. The Third Party Act provides Third Party Only (TPO) insurance as the minimum, this has most Kenyans thinking that with this, they are all covered from risks.
However it is important to understand the necessity of insurance cover, as you value your motor vehicle, it is important to get comprehensive insurance cover and as well supplement it with personal accident insurance coverage for personal accidents and as well with medical insurance cover.
It is important to go through the Motor Insurance policy document, the terms and conditions, and specifically to understand the Limits provided by the insurer. This may be technical and that is why it is important to have an Insurance Agent Consultant like us who will guide you in understanding the terms
