Car Insurance Policy Document - Part IPosted on 2016-10-13
The majority of Kenyans who have insurance for their cars don’t know about what’s covered by the policy. They leave this to the insurance agents and brokers to advise them, but what happens when these intermediaries don’t capture the policy details? Most car owners only receive an auto insurance quote from their intermediary and never get to know the limits of cover, exclusions and excesses applicable at the time of a claim.
In Part 1 of this 3 part series, we take a look at some of the most important clauses in the comprehensive car insurance policy document that most car owners have never taken time to read.
Political Risks Exclusions Clause
It is hereby declared and agreed that this policy does not cover;
Any loss or damage occasioned by or through or in consequence, directly or indirectly, of any of the following occurrences, namely:
- War, invasion, act of foreign enemy, hostilities or warlike operations (whether war be declared or not), civil war.
- Abandonment and /or permanent or temporary dispossession resulting from detention, confiscation, seizure, restraint, commandeering, nationalization, appropriation, destruction, or requisition by order of any government de jure or de facto or by any public authority.
- Mutiny, civil commotion, military rising, insurrection, rebellion, revolution, military or usurped power, martial law or state of siege any of the events or causes which determine the proclamation or maintenance of martial law or state of siege.
- Any act, including but not limited to labor disturbance, lock-out, riot or strike, which is calculated or directed to bring about loss or damage in order to further any political aim, objective or cause, or to bring about any social or economic change, or in protest against any state of government, or any political or local authority, or for the purpose or imposing fear in the public.
- The act of any lawfully established authority in controlling, preventing, suppressing or in any other way dealing with occurrence referred to in clause 4 above.
- Plundering, looting, war pillage in connection with civil commotion or any of the activities referred to in clause 4 above. Notwithstanding the a foregoing, for the purposes of clauses 4,5 and 6 any loss or damaged occasioned directly by a labor disturbance lock-out, riot or strike or in order to bring about any social or economic change which is not politically motivated as envisaged in clause 4 shall not be excluded.in any action, suit or other proceedings in which the insurer alleges that by reason of these provisions any loss or damage is not covered by the policy, the burden of proving that such loss or damage is covered shall be upon the underlying insured.
This means that a comprehensive motor insurance policy in Kenya won’t cover damages as a result of any events of a political nature. We always advise all car insurance owners to include a special add-on to their vehicle insurance to safeguard against this common risk. The Political Violence and Terrorism cover extension costs between 0.15-0.25% of the value of the motor vehicle.
Inclusion Of Special Perils
It is hereby understood and agreed that the following shall be deemed to be added to this policy: -
e) By flood, typhoon, hurricane, volcanic, eruption, earthquake or other convulsion of nature.
The motor vehicle insurance policy will cover damage or loss of the insured car due to the above events or conditions. In 2015, Kenya experienced heavy el-nino rains causing widespread flooding in Nairobi and many parts of the country. As a result, many cars were damaged and destroyed by the floods. For those on a comprehensive cover, the insured would have been compensated under the policy.
Endorsement (Riot, Strike And Civil Commotion)
It is hereby declared and agreed that notwithstanding anything in the written Policy contained to the contrary this insurance under this policy shall extend to cover Riot and Strike damage which for the purpose of this endorsement shall mean (subject always to the special condition hereinafter contained) loss of or damage to the property insured directly by -:
- The act of any person taking part together with others in any disturbance of the public peace (whether in connection with a strike or lock-out or not) not being an occurrence mentioned in condition 5 of the Special Condition hereof
- The action of any lawful constituted authority in suppressing or attempting to suppress any such disturbance or minimizing the consequences of such disturbance.
- The willful act of any strikes or locked out worker done in furtherance of a strike or in resistance to lockout.
- The action of lawfully constituted authority in preventing or attempting to prevent any such act or in minimizing the consequences of any such act.
The motor insurance policy in Kenya will cover the insured for damages from any events deemed to be of a civil nature, these are commonly company strikes, labour strikes, events that are not of a political nature.
This insurance does not cover loss or damage occasioned by or through or in consequences directly or any of the following occurrences, namely-:
- War, Invasion, act of foreign enemy, hostilities or warlike operations ( weather war be declared or not), civil war.
- Mutiny, civil commotion assuming the proportions of or amounting to a popular rising, military rising, insurrection, rebellion, revolution, military or usurped power, martial low or state of siege.
- Act of terrorism committed by a person or persons acting on behalf of or in connection with any organization. For the purpose of this condition ‘Terrorism’ means the use of violence for political ends and includes any use of violence for the purpose of putting the republic in fear.
In any action, suit or other proceeding, there the company alleges that by reason or the provision of this condition any loss or damage is not covered shall be upon the insured.
In the next part of this series, we will take a look at more of the common terms that every car owner should be aware of on their vehicle insurance policy document.