10 Frequently Asked Questions About Insurance in Kenya

This is the first post on a series of posts we will be posting to try and demistify and answer some questions that are frequently asked by most Kenyans about insurance in Kenya.

1.What is Insurance?

This is a contract between two parties, where one party undertakes to compensate the other,upon the happening of an eventuality. The party promised compensation pays some money to the insurance company,referred to as the premium.




2.What is insurance premium?

This can be referred to as the cost of insurance.It is the money paid by the person who requires insurance to an insurance company.


3. What is an insurance policy?
This is the contract document issued by the insurance company,containing the terms and conditions of the contract.It is indeed the evidence of the contract and should be read carefully to understand the risks covered, those excluded and the duties of each party.



4. What is a proposal form?

This is a form containing questions designed by the insurer to enable the insurance company obtain details of the risk and form an opinion of what is being insured. You complete this form when applying for insurance.



5.Who is a third party?

This is any person who is not a party to the contract in question.In insurance, this is any other person, apart from the insurance company, the vehicle owner (or the driver) and members of his/her household.



6.Who is an insurance agent?

This is any person or firm selling insurance products of any provider
and is licensed by the commissioner of insurance.An agent is normally
appointed by a particular company and represents the company that has
appointed him/her.


7.Who are insurance Brokers?

These are intermediaries in the insurance industry who are licensed by the
commissioner of insurance to solicit insurance business, negotiate
terms and conditions on behalf of the customer and secure cover on his
behalf.They do not issue insurance policies. Unlike the agents they
need to use a trade name.


8.Must I insure through an intermediary?

No. You are at liberty to go directly to an insurance company of your choice and secure your cover.


9.How much commission do I have to pay the broker or the agent?

You do not need to pay anything to the intermediaries.The insurance company pays them commissions.


10.What is a policy excess?

This is a predetermined amount or a proportion of a claim that the customer
bears in the event of an accident. This will normally be contained in
the policy document and can be contained in the policy document and
can be increased or decreased depending on the number and frequency of claims.