Recently, there has been a notable increase in the number of motor insurance claims rejected by insurance providers, due to misunderstandings between them and policyholders regarding coverage.
According to data from the Insurance Regulatory Authority (IRA), insurance firms turned down a total of 22,364 compensation claims worth Sh658. 9 million during the first quarter of 2025.
While there are some cases where insurance companies have illegally failed to honor claims, experts observe that many times, insurers have valid reasons for not honouring claims.
“The cheapest policy won’t always offer you the best value,” said Jane Muthee, Head of Claims at First Assurance.
“Understanding policy details, comparing options and looking beyond the premium price can ensure adequate coverage for your specific needs,” she added.
As opposed to looking at the premium price only, Jane advises policy buyers to carefully review the policy wording before signing so as to understand all inclusions and exclusions.
At the very least, road users in Kenya are legally required to have third-party liability insurance, which covers damage or injury caused to another person or their property in an accident.
However, for robust protection, a comprehensive policy is often recommended. This covers third-party liabilities while also protecting your own vehicle from damages caused by accidents, theft, fire, natural disasters, or vandalism.
Before buying insurance, clients are advised to conduct some background checks on the insurer’s financial stability and claim settlement ratio (CSR), which indicates the percentage of claims settled. A high CSR suggests efficiency and reliability.
“Working with reputable insurance providers can ensure you make an informed choice that provides genuine peace of mind on the road,” posed Muthee.
First Assurance offers three different types of comprehensive road insurance covers, which customers can today pay for in monthly installments, following the introduction of a solution dubbed Motor flexi, designed to make comprehensive coverage more accessible.
“We have a product dubbed First Auto motor private, which offers benefits like roadside rescue, medical expenses, and personal accident cover, plus extensions for political violence/terrorism at extra cost,” said Muthee.
The firm also has a product dubbed First Auto motor commercial, that covers loss or damage to the vehicle and its accessories including legal liability to third parties and passengers in respect of death or bodily injury arising from the use of the motor vehicle for commercial purposes.
They also have a motorcycle policy that covers loss or damage to the motorcycle and its accessories including legal liability to third parties and passengers in respect of death or bodily injury arising from the use of the motorcycle for social, domestic and pleasure purposes.
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