Commercial Vehicle Insurance in Kenya

Commercial vehicle insurance covers vans, pick-ups, lorries, buses and special vehicles used for business. Third-party only meets the legal minimum; third-party, fire and theft adds those risks to your own vehicle; comprehensive also covers accidental damage to it. The policy is written for a use class, such as own goods, general cartage or PSV, so declare how the vehicle is really used.

Every PSV must carry third-party insurance that also covers its passengers, because vehicles carrying passengers for hire or reward must insure passenger liability under Cap 405; insurers need not pay more than KES 3 million for any one person's claim. Most owners add comprehensive cover for the vehicle itself.

Fleet insurance puts all your business vehicles on one policy with one renewal date. Insurers often start fleet rating from about three vehicles and price it on the fleet's claims history over three years, area of use and whether you run a fleet-management or tracking programme. A good record and trackers can bring better rates or lower theft excesses.

Three covers are required by law for the businesses they apply to: WIBA for every employer, with no small-employer exemption; third-party motor cover for every vehicle on the road, including passengers for PSVs; and marine cargo cover with a Kenyan-licensed insurer for imports. Certain professions, such as doctors and advocates, must also hold professional indemnity. Fire and public liability are not required by general law, but landlords, lenders and tenders often insist on them.

Every school vehicle needs at least third-party motor insurance; driving without it is an offence. Vehicles carrying passengers for hire or reward must also cover passengers. School bus policies are usually comprehensive and include passenger legal liability, often rated per seat, so declare each bus's seating capacity. Pupils' personal accident cover adds benefits regardless of fault.

Goods in transit insurance covers your goods against loss or damage while they are moved by road, rail or inland waterway, from loading at the start until unloading at the destination, including temporary stops. It can be bought for a single trip or as an annual policy, and on named perils (fire, collision, overturning) or wider all-risks terms that add theft and pilferage.

Make people and the premises safe, then limit further damage. Report theft, break-ins and accidents involving injury to the police immediately and get the OB number and an abstract. Notify your insurer or agent the same day (some insurers ask for notice within 24 hours). Photograph everything, keep damaged items for the loss adjuster, do not admit liability to anyone, and start listing what was lost with its value.

Expect to provide a completed proposal form, your KRA PIN, a certificate of registration or incorporation, a CR12 for limited companies, and the ID or passport of the person signing (some covers, such as bonds, ask for every director's ID). The insurer will also want a list of what you are insuring and its value, staff numbers and annual earnings for WIBA, your premises' construction and security, and three years' claims history.

Often, yes. At least one insurer states that its SME package can be paid in instalments, and several offer premium financing, where a bank or financier pays the annual premium and you repay it monthly, usually with interest. Others expect the full premium before cover starts. Ask for the total cost of financing, not just the monthly figure, and keep payments up: a missed instalment can end the cover.

Three statutory charges are added to the premium: a training levy of 0.2%, a Policyholders' Compensation Fund levy of 0.25% and stamp duty of KES 40. On a KES 50,000 premium, that adds about KES 265. Check that your quote shows them as separate lines so you can compare insurers on the same basis.