Insurance is the transfer of risk from one party known as insured to another known as insurer so that when a risk occurs, the insured would be compensated against the risk.
Motor vehicle insurance is compulsory unlike life insurance. A vehicle owner has the option of taking either third party insurance which only compensates the loss incurred by a third party involved in the accident. On the other hand, comprehensive insurance compensates all the damages incurred including the replacement of the windscreen and side mirrors, or even replacement of the car with a brand new one incase the car is extensively damaged but it should be noted that the driver of the vehicle does not enjoy the cover. It is prudent therefore for the driver to secure a personal accident cover for him or herself.
When securing the comprehensive insurance, one has the option of including excess waiver in the cover. Although this rider is optional, it is very important for a client to include it in the comprehensive cover which most insurers charge between kshs 2500 and kshs 5000, because it protects the clients against paying a certain amount of money required sometimes in excess of ksh 30000 before the insurer can commence repairs or any other kind of compensation required depending with the extent of damage.
Most insurers however do not provide comprehensive covers for vehicles that manufacture dates are ten years old and above. The client has no option but to secure a third party insurance for the vehicle.
Having all these in mind, one needs to know that to secure the insurance cover, one has to provide the insurer with copies of logbook or transfer of ownership deed incase the logbook is not available yet, identity card and the pin certificate in order to have all the correct information in the insurance cover. One can pay a portion of the full premium (money paid to secure the cover)calculated against the tentative sum insured (value of the vehicle ) pending valuation from a service provider contracted by the insurer at the later’s cost, then after valuation, the full amount of premium for the whole year be paid and the full cover which is annual provided to the client. The insured should also make sure that after securing the full cover, a policy document should be provided by the insurer for proof of contract.