Comprehensive vs third party insurance and claims process

Insurance plays a vital role in safeguarding individuals and businesses from financial losses in the event of unexpected occurrences.

In Kenya, motor vehicle insurance is particularly common and legally mandatory. There are two primary types of motor insurance covers available: comprehensive insurance and third-party insurance.

Understanding the distinctions between these options, and how to file claims under each, is essential for every vehicle owner

Comprehensive insurance

Comprehensive insurance is the most inclusive form of vehicle cover in Kenya. It provides protection not only against damage to third-party vehicles or property but also for the insured’s own vehicle.

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This type of insurance typically covers accidents, fire, theft, natural disasters (such as floods), and vandalism. Additionally, some comprehensive policies may include benefits such as roadside assistance, personal accident cover, and windscreen damage.

Usually the benefits come with added premiums but at a very affordable price. For the windscreen majority of insurers have a limit of Sh30,000 to Sh100,000 that is extended for free, any amount above the free limit is charged.

Peace of mind

Due to its extensive coverage, comprehensive insurance comes with higher premiums than third-party insurance, but the broad scope of protection can offer significant peace of mind in the event of major damage or loss.

Third-party insurance

Third-party insurance is the minimum legal requirement for all vehicles operating on Kenyan roads. This cover only protects the insured from liability for injuries or damage caused to other people (third parties) or their property. It does not provide any compensation for damage to the insured’s own vehicle.

This type of insurance is ideal for individuals seeking to meet the minimum legal requirement at a lower cost.

While it is more affordable, it offers limited protection and may result in significant out-of-pocket expenses if the insured’s vehicle is damaged in an accident.

Important note: Both comprehensive and third party insurance have deductible.

A deductible is the amount of money you agree to pay out-of-pocket for covered losses before your car insurance policy starts to pay for repairs or other expenses. 

It’s essentially a portion of the claim you’re responsible for, and the insurance company covers the remaining costs.

The deductible is outlined in your policy schedule, hence its of great importance to have your schedule and policy document for reference.

The claims process in Kenya

The claims process for both types of insurance is generally similar, although the scope of compensation differs.

1. Report the incident: Notify your insurance provider as soon as possible after an accident, theft, or damage. A police abstract report is often required, especially for accidents, theft, or fire.
2. Document the damage: Take clear photographs of the damage and the scene, and if it is possible take details of the other vehicle that you have been involved in an accident with. Taking a photo of other vehicle’s insurance certificate would be very helpful in processing and following up a claim.
3. Fill out a claim form: Obtain and complete a claim form from your insurer, providing accurate and complete information about the incident.
4. Vehicle assessment: The insurer will appoint an assessor to evaluate the damage and determine the extent of compensation.
5. Claim approval and repair: Once approved, the insurer may direct you to an approved garage for repairs (comprehensive) or proceed with compensating the third party (third-party insurance).
6. Settlement: The insurer processes payment for repairs, or reimburses third parties, depending on the policy type.

In conclusion, choosing between comprehensive and third-party insurance in Kenya depends on your vehicle’s value, your budget, and the level of risk you are willing to bear.

Regardless of the type, understanding the claims process ensures smoother handling of incidents when they occur.

The writer is an insurance expert