Motor Third Party Insurance in Kenya: Costs and Benefits

Motor Third Party Only (TPO) is the second most popular car insurance in Kenya behind the comprehensive cover. It is the minimum required insurance for any kind of vehicle to be on the road in Kenya According to the Kenya Traffic Act Chapter 405. This is mandatory in order to protect members of the public and their property from the risks posed by operating motor vehicles in a public environment. A third type of car insurance in Kenya, Third Party Fire and Theft (TPF&T) is offered by most general insurance companies but is not popular because it is considered expensive for the coverage offer. Because it does not offer coverage against damages to the insured vehicle, the market does not find it attractive at the price ranges. Therefore, the most common type of car insurance in Kenya is the comprehensive cover! Much the same way, third party insurance is common in other parts of the world like the UK, it is featured on leaving car insurance price comparison websites like GoCompare.

Below are the most common types of third party only car insurance in Kenya categorised according to the primary usage of the vehicle and size of the vehicle

PRIVATE

The most common type of Motor Third Party insurance in Kenya is for private vehicles, understandably so as most cars in Kenya are used for private and social means. This is the most common type of cover and it is offered by all the general business insurance companies in Kenya.

Scope of cover

The private third party only car insurance in Kenya covers

Costs

The cost for a private third party only car insurance is as low as KSh 5,000 to as high as KSh 10,000 per annum. The average market price for the cover goes between KSh 5,000 – 7,500. You can compare the price of motor third party only insurance by checking here.

COMMERCIAL

For the commercial third party only car insurance, the cover varies widely depending on two key variables namely the use of the vehicle and the tonnage of the vehicle.

1. Vehicle tonnage
Depending on the tonnage of the vehicle, the costs of the insurance vary from KSh 7,500 per annum for small vehicles like pickups of tonnage less than 4 tonnes.
For the biggest vehicles in this category with up to 30 tonnes, the costs are up to KSh 25,000 per annum
2. Vehicle Usage
There are two main uses of commercial vehicles i.e. own goods carriage and general cartage.
Own goods carriage applies for vehicles owned and operated by individuals for their own business while general cartage are vehicles leased out to carry goods as business, this is common with transporters.

SPECIAL PURPOSE VEHICLES

This group applies to the different types of generally commercial vehicles on the roads.
Trailers are the most common example of this, most are owned by transport companies. Third party car insurance for these will normally be charged as part of a general insurance portfolio but prices range from KSh 5,000 – 20,000 per annum.
Another common example are construction diggers. These are owned by mostly engineering companies. They range from excavators, diggers, caterpillars and prices will range depending on a wider general insurance portfolio.

MOTOR CYLES

This is perhaps the second most popular type of third party only insurance cover in Kenya. This is split into different categories again depending on the usage of the motorcycle namely PSV (bodaboda), commercial and finally private Bodabodas.
These attract the highest prices because of the added risk of carrying licenced passengers with the prices. The insurance premiums for these start from KSh 7,500 plus the cost of the Passenger Legal Liability (PLL) of KSh 500 per passenger.

Private and Commercial

The commercial motorcyles normally belong to courier companies like POSTA, G4S, Sendy and many private organisations that have motor cycles for delivery purposes.
Many Kenyans also own motorcycles for private transport, they are good way to avoid the traffic jams at peak hours .
Price for these two classes of motorcyles start from KSh 5,000 per annum, many commercial motorcycles also include a PLL cover of KSh 500 per passenger.

PSVs

Public Service Vehicles (PSVs) are one of the biggest segments in Kenya. With the arrival of cab hailing applications like UBER, TAXIFY, Little Cabs, this segment has grown exponentially. The main three segments are chauffeur driven cars, hire cars and the Matatus.
Motor third party insurance is not common insurance for the PSV cars except Matatus. Most PSV vehicles are required to take comprehensive car insurance to be listed on the cab hailing apps. However, owners and drivers of these vehicles can still get cover for their vehicles, for the chauffeur driven segment a saloon car of 4 passengers will cost approximately KSh 9,500.

Matatus

Matatu motor vehicle insurance is treated very differently from other car insurances in Kenya. The Matatu vehicle itself is insured under a class of insurance Motor Asset. The liabilities are then insured under a third party insurance, it is priced based on the seating capacity of the Matatu. A small number of insurance companies do this kind of insurance in Kenya namely Directline Insurance Company and Invesco Insurance Company of Kenya. The price of a third party insurance for a Matatu starts from KSh 98,400 for a 14-seater minibus according to Directline insurance company. This price is for a one off payment, luckily there is options for flexible payments all the way down to weekly payments. Check out our blog post for more details on PSV Matatu insurance companies.

ACCIDENT CLAIMS PROCESS

A third party claim is when there is damage caused to someone else's vehicle(s) or injury to a third party as a result of an accident.

The following steps are followed when a third party claim occurs:

• Obtain the details of the parties involved but don’t admit liabilities
• In case of injuries obtain necessary medical attentions
• Secure the vehicle or property to avoid further damages or loss
• Report the matter to us/ your insurer
• Report the matter to the police and obtain police abstract/ report- police in their capacity will investigate and indicate the party to be blamed/ liable
• Fill the claim forms and return through us
• Insurer may opt to investigate the matter or compensate the third party directly
• Third party may accept the offer or may decide to appeal through the legal means

If you are looking for a third party car insurance or any other insurance covers on the market, do get in touch with us by chatting with our sales specialists online or getting a quote online. Visit our offices to discuss what insurance cover is suited for your PSV vehicle.