1. Why should I insure my vehicle comprehensively and not third party

A. Comprehensive covers provides indemnity for Accidental damage to an Insureds vehicle, Theft , Fire Risks including legal liability for accidental death , bodily injuries or property damage sustained by third parties arising. The cover is rated on a percentage of the sum insured rather than a flat rate like the third party cover. Annually, the Insured is entitled to No Claim discount and by the 5th Year one is entitled to 50% No claim discount.

2. Why should I take my vehicle for valuation and pay extra costs when I know the exact amount I should insure it for?

A. It is important to determine the correct market value of the vehicle to avoid under insurance. The policy contains the average clause which in summary means that if the insured has under insured the vehicle then the Insured will apply a formulae to determine the actual loss and eventually the Insured may be heavily penalised.

3. The loan I have with the Bank is Kshs. 400,000/-. Why should I insure over and above that?

A. Loan granted against any asset lodged with the Bank may not necessarily be equivalent to the value of property as such you need to insurance your at the market value which would be replacing value in case of a loss.

4. Why should I pay an excess when my vehicle is comprehensively insured?

A. This is contributory as you are assumed to be your own insurer in case of an accident. It is assumed that when you are on the road you also contributed to the accident and you bear your own insurance.

5. Why can't my vehicle be fully repaired even on areas with previous accidents or dents?

A. One of the principles of insurance is 'Indemnity' The insurer promises to put the Insured in the position they were in before the loss /claim. You must not be worse off, or better off. Insurance does not cover 'betterment'.

6. In the event of a vehicle being a write off, why can't I be paid the full amount I had insured it for?

A. Immediately a new car leaves a showroom depreciation takes effect and every year thereafter . However it is important to have the vehicle valued by a reputable motor vehicle valuer every 2nd year to determine the current market value. This prevents over insuring and under insurance for which the Insured does not stand to benefit.

7. Why must I have the Log book in my name?

A. To determine Insurable Interest in the vehicle. The Insured must have an insurable interest in the vehicle

8. What are these clauses on the policy what do they mean?

A. Insurance policies are subject to clauses which may exclude certain perils for example, war and allied perils, consequential loss, etc. The "proximate cause" of the loss must be insurable.

9. What are these policy terms, conditions and exceptions?

A. Policy terms, conditions and exceptions are those that ensure that the Insured adheres to the contract of Insurance.

10. Is my family covered when we are driving in my car and if not what do I need to do?

A. The Motor policy specifically includes an exception which states that the Insurer shall not be liable for death of or bodily injury to any person being a member of the same house hold as the Insured.

The client should have individual / family Personal Accident policies effected to cover accidental death, Permanent Total Disability, Temporary total disability

11. Why do I have to pay the excess when I have already paid the premium in full? What is this excess anyway?

A. Excess is the amount of money one has to pay when making a claim. Most insurance policies have an excess clause, which states the proportion, or amount the insured is supposed to be before a claim is settled. Sometimes the amount is deducted from the claim amount. In case the amount of claim is below the excess amount, then the insured bears the loss.

One of the reasons for having an excess onto the policy is to prevent insured from claiming for minor or small losses which can really be very costly to administer. It also creates an obligation on the part of the insured to try and control losses since he/she will be expected to bear part of loss when it occurs.

12. Why are there exclusions on the policy which is Comprehensive or All Risks in nature?

A. Practically all insurance policies have got exclusions.
Exclusions are situations that are not covered by a given insurance policy. If a loss or incident occurs due to such exclusions, your insurance policy will not pay the claim

However, some of these exclusions can be bought back onto the policy by paying an additional premium; some can be covered under other insurance policy, while others are simply not insurable as the insured is expected to manage the excluded aspects.

13. Should I report all accidents to the Insurer even if I do not want to claim?

A. Yes. It is always important to inform your insurance company or broker about any incidents especially those involving third party properties or persons.

All accidents involving your motor vehicle must be reported even if it may appear to be minor, and especially if another motor vehicle, passenger or pedestrian is involved. In case you fail to report an incident and a third party sues you later, your Insurer may refuse to take up the matter, as you will be seen to be in breach of the policy condition which require you to report all incidents likely to result in a claim within a specified period. Further, even when your insurer decides to deal with the claim they might not be able to gather sufficient evidence to protect both yours and their interests.

13. When is a car written off by Insurance Company?
A. It's up to the Insurance Company to decide whether to pay for repairing a car or to declare it a total loss and pay you its pre accident value. Most standard motor policies will not pay to repair a vehicle if the repairs cost more than the value assigned to the car. In practice, the insurance company will not pay for repairs if the estimated damaged goes beyond a certain percentage, say 50% of the vehicle's value hence declaring the vehicle a write-off.