The Traffic Act dictates that a motorist must have a valid insurance cover to use Kenyan roads.
Insurance is essential as it covers the driver, the passengers and the vehicle from risks such as accidents, fire, theft, and other forms of damage.
The insurance companies are obliged to compensate for losses incurred or injuries suffered in the event that the motor vehicle is involved in an accident, stolen or if it catches fire.
However, before settling a claim, insurance companies collaborate with the traffic police to conduct investigations to establish the circumstances under which the loss or the damage occurred before using their policies to determine compensation in line with the cover taken by the owner.
Insurance companies compensate motorists depending on whether the owners were authorised to drive, if the driver was of sound mind, if the vehicle was overloaded, and if the driver had a valid license among other factors.
However, there are instances where an insurance company can declined to settle a claim.
Kenyans.co.ke has compiled reasons why an insurance company may decline to compensate a motorist incase of an accident.
No Inspection was carried out
A car owner may not be compensated if he did not disclose any pre-existing damages on the vehicle before an accident. If investigation finds out that the car had prior damages, an insurance company can decline to compensate the owner. It is, therefore, advisable to disclose any damages before activating an insurance policy.
Outdated Premiums
Incase a motorist is involved in an accident with outdated premiums, then an insurance provider is not obliged to compensate them.
"A claim may be rejected if a policy owner has not been regularly paying their policies," resolution insurance states in one of its policies.
No Complaint Recorded
An insurance company may refuse to compensate a motorist if investigations conclude that there was no personal injury. According to most policies, it is advisable for a motorist to visit a hospital to dispute a scenario where an insurance company argues that the injuries may have been inflicted through other reasons.
Avoidable Accidents
A car owner may end up counting losses if an insurance provider establishes during the investigation process that the policy holder may have caused the accident which could have been avoided.
Unlicensed Driver
In Kenya, most people tend to borrow cars, especially during weekends. However, a claim may be rejected if the car at the time of the accident was being driven by an unlicensed driver.
Policy Cancellation
This is a rare occurrence but insurance companies may decline to compensate a motorist if the insurer cancels the policy due to additional information provided by a car owner that increase the risk to be compensated for.
Other factors which may compel insurance company not to compensate a motorist incase of an accident include reckless driving, parking at insecure location, among others.
To avoid the loses, it is advisable for car owners to obtain insurance covers from reputable insurance firms and follow all the guidelines while filing for compensation.
