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The good and ugly truth about purchasing a motor insurance policy.

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Driving your dream car on our Kenyan roads can be both thrilling and fulfilling in the same measure. However, there are so many uncertainties associated with the road experience and therefore it is always prudent to ensure you obtain a motor insurance cover that will cushion you against the effects of these uncertainties. I believe as car owners; the above facts are not news to us. As such I would like to shift our attention to a matter that is of grave concern owing to the fact that many of us are not being compensated after a loss by our respective insurers.

Other than obtaining a cover for your vehicle, it is critical to ensure that you obtain the right kind of cover and this is determined by how you intend to use your vehicle. In my line of work, I have noted that most repudiation letters cite use outside the scope of the running policy as a reason for rejection of a claim. When purchasing a policy, ensure that you state the use of the vehicle so that your agent can facilitate the right kind of policy. For instance, if you intend to use your vehicle for hire and reward, ensure that you obtain a PSV policy that covers this kind of use. If you take a private policy and use the vehicle for a taxi business, in case the vehicle is involved in an accident, you will not be reimbursed.

Further, a motor PSV cover has two policies, that is a Chauffeur-driven policy and a self-drive policy. When you intend to hire out your vehicle but with your own designated driver, then the chauffeur-driven policy would be best for you. On the other hand, if you intend to hire out your vehicle to individuals without assigning them a driver, purchase a self-drive policy. The premiums for the self-drive policy are higher compared to the chauffeur-driven policy due to the risks involved but overlooking the aspect of use puts you at a much greater risk.

Recently, I encountered a case where the insured covered his vehicle on a motor-taxi policy but the vehicle was operating a ride-sharing business. He was not compensated and was informed that he should have taken a motor matatu policy for his vehicle. There are high chances that the individual was not aware of such rules which I ascribe highly to failure in reading our policy schedule. Well! The truth of the matter is that we all rarely read the terms and conditions in our policy schedule and insurance companies bank on this fact. That’s how they ensure they remain in business because ignorance is no defense. I would implore us to be vigilant and even engage the help of insurance consultants when looking to insure our vehicles.

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I am Nyambura The Motorist
I have a bias for Hybrids
An insurance expert

#SpaceYaMagari
Nyambura Wambui
the authorNyambura Wambui
I am Nyambura The Motorist I have a bias for Hybrids An insurance expert

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