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Car Insurance

Importance of Car Insurance in Kenya

Importance of car insurance in Kenya

Unpredictable road activities and conditions can challenge even the best of drivers out there. Insurance was created to protect you from unexpected and unlikely events. Here are some scenarios where a car insurance can act as a life saver!

When your car is involved in an accident, the damages caused to your car becomes your own problem. This means that you will end up spending a significant sum of money in car repairs or buying a new car. Let's see an an example of a vehicle that you may own with a value of Ksh. 1,000,000 which is involved in an accident. Following will be the breakdown of some of the costs you will pay for an “average impact” -

Following will be the breakdown of some of the costs you will pay for an “average impact” -

CAR DAMAGES COST
Bonnet 25,000/=
Bumper 13,000/=
Fender 13,000/=
Headlight 7,500/=
Side Mirror 7,500/=
Grid 5,000/=
Total Ksh. 71,000/=

In addition, if you own a popular car, chances are it can be stolen leaving you stranded. This directly results in a financial loss as not only you will lose a priced asset of yours but you will also spend more to buy a new car.

Additionally, with changing climatic conditions and poor infrastructure, there are more flood prone areas now than ever before which has a potential to seriously damage your car. This again becomes your problem if you are not comprehensively covered.

Comprehensive Insurance

Comprehensive insurance is a slightly higher type of motor insurance (private or commercial) that provides cover against the widest range of risks; including car damages, accidental bodily injury on third parties, loss of items from the car, cost of accidental transfers by car hire/towed vehicle if the insured car incurs massive damage, and windscreen breakage. If you have recently purchased a new car, check with us on the available options in the market. It

Third party, Fire and Theft.

Third party motor is the most basic form of insurance coverage. It covers for loss of the vehicle through fire or theft and any loss as a result of attempted fire or theft. Damage to property is also covered. There are optional extras available such as windscreen breakage

Third party

Third party covers minimum basic motor insurance available. It offers liability to third parties in the event of bodily injury and damage to third party vehicles or property. It does not provide insurance compensation to your damaged vehicle in case of an accident. It is a mandatory cover required by law.

BENEFITS OF CAR INSURANCE
Insurance on the Vehicle Maximum Compensation
Loss or Damage Value of the Car
Financier's Interest Value of the Car
Protection, Recovery and Removal after Accident 30,000
Car Repair Costs 50,000
Liability to Third Parties  
Passenger Injury/Death 3,000,000 (per person), 20,000,000 (per event)
Third Party Persons Injury/Death 3, 000,000 (per person), Unlimited (per event)
Third Party Property Damage
Emergency Medical Expenses  
Emergency Medical Expenses 30,000
Vehicle in Custody of Motor Trader or Other Motor Vehicle Service Providers
Vehicle in Custody of Motor Trader or Other Motor Vehicle Service Providers Value of the car
EXCESS IN CAR INSURANCE
Your Contribution
Own Damage 2.5% of Estimated Value
Theft (With Anti-Theft Device) Lower of 10% Estimated Value or Pre-theft Value
Theft (Without Anti-Theft Device) Lower of 20% Estimated Value or Pre-theft Value
Theft (With Tracking Device) Lower of 2.5% Estimated Value or Pre-theft Value
Third Party Property Damage 7,500
Young Driver (Aged 21 or less) 5,000
Inexperienced Driver (1 year experience or less) 5,000
USAGE IN CAR INSURANCE
Included - Social, Domestic, Pleasure, Business, Profession
Exluded - Racing, Competition, Rallies or Trials, carriage of passengers for hire or reward

 

 

Did you know that an insurance policy is a legal contract? As with all other contracts, there are some documents you need to present to a car insurance company in order to get a policy. Here are the documents you need have before talking to a car insurance agent.

 

  1. National ID Card (or any other official ID)

Insurance companies will ask you for a form of identification before they process your motor insurance policy application. Usually they’ll ask for a national ID because it’s the most popular form of identification available in Kenya. You can also use other government issued forms of identification such as your Kenyan passport. Foreigners are required to have an alien ID issued by the Kenyan government. Otherwise, you passport should be a sufficient for of ID for purposes of insurance.

 

  1. Log Book

You also need to carry your logbook as you go to see your insurer. The logbook is proof of ownership and will be required whenever you make a claim. The logbook is also important for the insurance company because it provides details of the car, such as make and model, engine capacity, age, carrying capacity, etc. These elements are used to calculate the value of premiums you will be required to pay.

 

  1. Valuation Report

For the first time you buy insurance, the car insurance company will require you to provide them with a valuation report. In many cases, the will provide you with a list of affiliated valuers who will then carry out an independent assessment of the value of the car, and thereafter send the report to the insurance company. Its probably better to get that list from your insurer rather than going to look for a valuer yourself, because you will be charged less as a client of the insurance company. Some insurance companies will require a new valuation periodically to adjust the value of the total sum assured, factoring in wear and tear, and depreciation.

 

  1. The car insurance Proposal form

The insurance company will also expect you to fill out a motor insurance proposal form. This form is the one used to assess your risk levels. An underwriter will examine it and will calculate the premiums you need to pay for the risks you would like to be covered. Most companies have the insurance proposal form on their websites for easy download. It is however advisable to fill the form in the presence of an insurance agent to ensure you get full clarity on the matters it raises, and a full understanding of the consequences of each of your responses. Giving false information on your proposal form can void your insurance.

How to make a comprehensive insurance claim

  1. Report the Incident to the Police: Report the incident to the nearest police station so at to get a police abstract. If it’s a car accident, wait at the scene of the accident for traffic policemen to arrive to ascertain who is at fault. This report will be the basis for making your claim.
  2. Report Incident to your Insurance Company: Take care to do this as fast as reasonable, and preferably while still at the accident scene. The company should offer you guidance regarding the information you need to collect to facilitate the processing of claims.
  3. Fill a Claim Form: Get a claim form from the insurance company, and fill it truthfully. The Pacific Group Comprehensive Insurance Claim form can be downloaded from this website. After filing the form, make all necessary attachments and send it the insurance company.
  4. Await Investigation or Valuation: If your car requires repairs, then the insurance company will tow it to a garage and send a valuer to look at it. The company will then pay for repairs. In the case where the company feels the claim is not proper, it will commence its own investigations and it will then proceed based on the recommendations of the investigators.
  5. Receive Compensation: If the claim requires compensation as is the case when a car is written off, the company will send the compensation money to your bank account.

Difference between Third Party Car Insurance & Comprehensive Car Insurance

Value of the car

If the value of your car is low, then it makes sense to buy a Third party Car Insurance since damages caused to your vehicle can be repaired at a fairly low cost and quite easily. However, if your vehicle is new or expensive, you should buy a Comprehensive Car Insurance as it will cover you against most kinds of damages caused to your vehicle as mentioned above.

Coverage

Third party Car Insurance covers damages caused to third party vehicles, injuries caused to other people in an accident, as well as damage to third party property. This is the minimum coverage that you are required to purchase by law. However, this does not cover damages caused to your own vehicle. On the other hand, Comprehensive Car Insurance provides coverage for yourself and your car in case of an unfortunate event. It is a wider coverage plan as it also covers third party damages.

Cost

A Comprehensive cover is more expensive than a Third party cover as it provides coverage for a wide variety of injury/loss/damage.

Comprehensive Car insurance Kenya includes coverage for

Report the incident to the nearest police station so at to get a police abstract. If it’s a car accident, wait at the scene of the accident for traffic policemen to arrive to ascertain who is at fault. This report will be the basis for making your claim.

Theft

Vandalism

Glass damage

Damage from hitting an animal / bird

Damage from falling objects

Damage from fire incidents

Damage from flood waters

Damage from weather / natural disaste

Damage caused to third party

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