Motor Insurance

The use of motor vehicles generally results in accidents leading to injury or death to passengers, pedestrians and damage to third party properties. To protect passengers and road users from these risks a law was first enacted in 1946. This is known as the Insurance (Motor Vehicle Third Party Risk) Act. The act has been amended several times. The Act now in use was enacted in 1989. Besides this, motor vehicles face many risks such as theft, accidental damage, damage by fire, malicious damage and the like. The need for motor insurance is therefore quite clear.

The Insurance (Motor Vehicle Third Party Risks) Act 1989

This Act makes it compulsory for a motorist or owner of a vehicle driven on Kenyan public roads to have in force a policy covering third party risks of the motor vehicle. The third-party policy covers the insured against legal liability arising from death or bodily injury to any person caused by or arising out of the use of a motor vehicle on public roads.

The main provisions of the Act are:

  • It provides for compulsory third party motor insurance;
  • It makes it mandatory for a certificate of insurance to be issued as evidence of the insurance policy;
  • The certificate should be displayed in a vertical position behind windscreen or rear side window;
  • Insurer must pay claims for death or bodily injury irrespective of defects in cover
  • It gives various grounds which the insurer cannot use to avoid paying a road accident injury claim;
  • This includes number of persons carried by the vehicle, age, physical condition or mental condition of the driver, carrying of a means of identification in the vehicle other than the statutory one, condition of the vehicle, time or area where the vehicle is used and the weight or physical characteristics of the goods being carried.

Scaling Minds Insurance agency limited offers different levels of motor insurances

Private Motor Insurance: This policy covers you, your car and all third parties against all possible risks. It covers your vehicle against:

  • Theft
  • Vandalism
  • Fire
  • Natural disasters (like a hurricane or a tornado)
  • Falling objects
  • Damage done to your car by animals
  • A civil disturbance (like a riot that results in damage or destruction of your car)
  • In case of vehicle theft, caught on fireF, vandalism
  • In damage due to natural calamities.

Motor Commercial Vehicles: There are various classes under this category. This is as follows:

Own Goods vehicles insurance– This is for the individuals, business firms who use commercial vehicle to transport their own goods which form part of the business.

General Cartage vehicles insurance– This is for the individuals, business firms who use commercial vehicle for hire and reward.