Third-party insurance is the minimum legal requirement for vehicles operating on Kenyan roads. It is designed to cover liability for damages inflicted on third parties in the event of an accident. Consequently, this means that the driver and vehicle are not covered for damages to themselves in the event of an accident.
As a vehicle owner, you are then obligated to shoulder the costs and liabilities in case of an accident. However, if there is harm to a third party, a pedestrian, a passenger, or a person in another vehicle, the third-party insurance will cover their costs, including medical fees.
Additionally, if the car damages third-party property, another vehicle, or any structure, the third-party insurance will cover those damages as well.
There are two types of third-party insurance offered in the Kenyan market and they vary depending on the package and insurers. They include:
1. Third Party Only: A third-party insurance policy only covers liabilities incurred by the third party.
2. Third Party Fire and Theft: While third-party insurance protects others in the event of an accident, it is also wise to insure your car against other risks like fire, theft, and floods. Third-party fire and theft coverage extends protection to these unfortunate events, although it may be more expensive than standard third-party insurance.
Legally, every motor vehicle on the road in Kenya must have third party insurance hence it covers any type of vehicle, including private vehicles, commercial vehicles, special-purpose vehicles, motorcycles and PSVs.
Several unique aspects of third-party insurance set it apart from other coverage options that drivers should be aware of. These include:
1. A third-party insurance policy has limitations on its cover. Some of the things it does not cover include:
- The property of the person who has the insurance.
- Anything that happens outside the area covered by the policy.
- When someone other than the car owner drives the car.
- Losses, damage, and problems caused by war, strikes, or similar events.
- Damage that happened when the driver was using drugs or alcohol.
- Damage to the windshield.
2. Owing to the fact that insurance does not cater for the damages to your car, the processing of the third-party cover is not exhaustive. The evaluation of the damage is made after the accident and only the damages to other passengers, other vehicles or other property is paid.
This differs from a comprehensive policy cover as both your damages and any other damages to a third party are evaluated hence the veehicle has to be valued before purchasing a comprehensive insurance cover.
3. Third-party insurance is not restrictive as it covers every vehicle on the road. On the other hand ,comprehensive may have restrictions on the cars that qualify for coverage.
4. Third-party insurance is affordable compared to comprehensive insurance. Different companies package their third-party insurance offers differently but nonetheless, they all help you meet the legal requirements for vehicle insurance while protecting any third party incase of an accident.
Well-established and more reputable companies’ third-party covers can go as high as Ksh15,000 per year, whereas you can find other covers as low as Ksh4,500 per year.
5. Third-party insurance is flexible, with different covers in the market offering coverage for periods as short as one week, to one month, three months, six months and one year. Due to the cheap prices, a driver can pay for the cover in a single installment. Comprehensive coverage on the other hand can be quite pricey and insurers can accept payments in up to three instalments.
6. If involved in an accident that is caused by another driver who has third-party insurance, you as well as the damage on you car is covered by the driver’s insurance.
The key thing to note is that insurance costs differ depending on the reputation of insurance companies in the market and their service delivery. It is also advisable to update your insurance once the cover lapses to avoid attracting legal repercussions while protecting those in your car.
