Author: Raymond
Category: Car Insurance in Kenya

Third-Party Motor Insurance Kenya: Cover and Exclusions

Understand what Third-Party Only motor insurance covers in Kenya, its exclusions, estimated cost, legal requirements and when to consider comprehensive cover.

Third-Party Motor Insurance in Kenya: What It Covers and What It Doesn’t

Third-Party Only insurance is the minimum motor insurance required for vehicles used on public roads in Kenya.

It is popular because it provides basic legal protection at a relatively affordable price. However, many motorists purchase it without fully understanding its limits.

Third-party insurance primarily protects you against specified legal liabilities arising when your vehicle causes death or bodily injury to another person. Depending on the policy issued, it may also cover damage to another person’s property up to a stated limit.

What it generally does not cover is damage to your own vehicle.

Before buying the cheapest motor insurance certificate available, understand exactly who is protected, what the insurer may pay and what financial risks remain with you.

Is Third-Party Motor Insurance Compulsory in Kenya?

Yes.

Under Kenya’s Insurance (Motor Vehicles Third Party Risks) Act, Cap 405, a person must not use—or permit another person to use—a motor vehicle on a road unless the required third-party insurance or security is in force.

The statutory requirement primarily concerns liability arising from the death or bodily injury of another person caused by or arising from the use of the vehicle on a road.

Simply put, a vehicle should not be driven on a Kenyan public road without valid third-party motor insurance.

A certificate must also match the correct vehicle and use classification. A private car certificate should not be used for taxi, ride-hailing, matatu, delivery or other commercial operations.

What Does Third-Party Motor Insurance Cover in Kenya?

Third-party motor insurance protects the insured against specified legal liabilities arising from an accident involving the insured vehicle.

The exact protection depends on the law, policy wording, vehicle class, declared use, liability established and limits shown in the policy.

Third-Party Death or Bodily Injury

If your vehicle causes an accident that injures or kills another person, the injured person or deceased person’s dependants may pursue compensation.

Subject to the policy and applicable law, the insurer may handle an eligible claim involving:

Medical consequences of the bodily injury
Pain, suffering and loss of amenities
Permanent disability
Loss of earnings or earning capacity
Fatal injury claims
Other legally recoverable damages

The insurer does not simply receive a hospital bill and pay it automatically. Liability must ordinarily be established, the claim must be supported by evidence and the amount must be agreed or determined through the applicable claims or legal process.

Under section 5(b)(iv) of Cap 405, the compulsory policy is not required to cover liability above KSh 3 million arising from a claim by one person.

A court award and the amount an insurer is legally required to pay are not necessarily the same thing. Depending on the circumstances, the insured vehicle owner could remain personally exposed to an amount exceeding the applicable insurance limit.

Damage to Another Person’s Property

Many Third-Party Only motor policies also provide limited protection for accidental damage caused to another person’s property.

For example, your vehicle could:

Hit another car
Damage a gate
Knock down a perimeter wall
Break a shopfront
Damage a road sign or another structure

Property-damage protection is governed by the insurance contract and its stated limit. It should not be treated as automatically unlimited or identical across all insurers.

Ask the insurer or intermediary to confirm the third-party property-damage limit before purchasing the policy.

Legal Defence and Claims Handling

When an eligible third-party claim is made, the insurer may investigate and defend the claim in accordance with the policy.

This may include:

Reviewing the accident circumstances
Appointing investigators
Examining police records
Communicating with the claimant
Appointing advocates where necessary
Negotiating an eligible settlement
Satisfying an eligible judgment up to the applicable limit

The insured should not admit liability, promise payment or privately settle a claim without first consulting the insurer.

Who Is Considered a Third Party?

A third party is generally another person who suffers an injury, death or covered property loss arising from the use of the insured vehicle.

Depending on the circumstances and policy, this could include:

A pedestrian
A cyclist
A motorcyclist
A passenger in another vehicle
The owner of another damaged vehicle
The owner of damaged property
Certain passengers carried in the insured vehicle

Passenger liability requires particular attention. The vehicle’s class and declared use must be correct.

A private vehicle carrying friends or relatives is not treated in the same way as a matatu, taxi, ride-hailing vehicle, school bus or tour vehicle carrying passengers for hire or reward.

What Third-Party Motor Insurance Does Not Cover

Third-Party Only insurance is basic liability protection. It is not designed to protect the insured vehicle against its own loss or damage.

Damage to Your Own Vehicle

If you cause an accident and your car is damaged, your Third-Party Only insurer will generally not pay for its repairs.

You must meet your repair or replacement expenses yourself.

Theft of Your Vehicle

Standard Third-Party Only insurance does not compensate you when your vehicle is stolen.

Protection against theft requires Third-Party, Fire and Theft or Comprehensive insurance, subject to the applicable terms and security conditions.

Fire Damage to Your Vehicle

If your car catches fire, ordinary Third-Party Only insurance generally will not pay for the damage to your vehicle.

Fire protection requires a policy that specifically includes it.

Your Personal Medical Expenses

Third-Party Only insurance does not ordinarily pay the insured driver’s medical expenses following an accident.

You may need separate protection such as:

Personal Accident insurance
Driver Personal Accident benefits
Medical insurance
Comprehensive motor insurance with an applicable personal accident extension

The benefits and exclusions should be checked before purchasing cover.

Damage Caused Deliberately

Insurance does not protect a policyholder against intentional damage, staged accidents, fraud or deliberate criminal conduct.

Undeclared Commercial Use

A claim may be rejected or disputed when the vehicle was insured for private use but was being used for:

Taxi or ride-hailing services
Matatu operations
Courier or delivery work
Commercial transportation
Hire and reward
Another undeclared business activity

Always insure the vehicle under its correct class of use.

Driving Outside the Policy Conditions

Claims may also be affected by matters such as:

An unauthorised driver
A driver without a valid licence
Use outside the permitted geographical area
Material misrepresentation
Failure to report an accident
Breach of policy conditions

The legal rights of an injured third party and the insurer’s contractual rights against the policyholder may not always be identical. Each incident must be reviewed on its facts and applicable law.

How Much Does Third-Party Car Insurance Cost in Kenya?

Third-party premiums depend on the vehicle category, period of insurance, insurer, declared use and current underwriting terms.

For a private car in Kenya, annual Third-Party Only insurance may cost approximately KSh 5,000 or more. Commercial vehicles, taxis, matatus, buses, motorcycles, tuk-tuks, pickups and special-purpose vehicles attract different premiums.

Indicative market prices are not guaranteed quotations. Insurer rates, levies, certificate charges and underwriting requirements can change.

For an accurate comparison, submit the vehicle details through the Imana Insurance quotation comparison platform.

Information Needed for a Third-Party Motor Insurance Quote

You may be asked to provide:

Vehicle registration number
Copy of the logbook or proof of ownership
National ID or passport
KRA PIN
Vehicle make and model
Year of manufacture
Vehicle class
Intended use
Seating or carrying capacity
Preferred insurance period
Existing insurance details, where applicable

Commercial and PSV vehicles may require additional licensing, inspection or operational documents.

Providing incorrect information to obtain a cheaper certificate can create serious problems when a claim occurs.

Can You Buy Short-Term Third-Party Insurance in Kenya?

Short-term Third-Party Only insurance may be available for selected vehicle classes, subject to insurer terms.

Depending on the insurer and vehicle category, cover may be available for periods such as:

One month
Three months
Six months
Twelve months

Annual cover is often the simplest option for a vehicle used continuously. Short-term insurance may suit temporary or seasonal requirements, but it should not be allowed to expire while the vehicle remains in use on a public road.

Availability and prices vary, so motorists should compare current quotations rather than relying on an old rate.

Why Do Some Kenyan Motorists Choose Third-Party Insurance?

It Provides Basic Legal Compliance

Third-Party Only insurance is generally the most affordable way to meet the minimum motor insurance requirement in Kenya.

However, owning a certificate is not enough. It must be valid, issued by an authorised insurer and appropriate for the vehicle’s actual use.

It Is Relatively Affordable

A third-party policy normally costs considerably less than comprehensive insurance because it does not cover accidental damage, theft or fire affecting the insured vehicle.

It May Suit Some Older or Low-Value Vehicles

Some owners choose Third-Party Only insurance where the vehicle’s market value is low and they are prepared to pay for its repairs or replacement themselves.

Age alone should not determine the decision. Consider whether losing the vehicle would disrupt your income, family mobility or business.

It Can Usually Be Arranged Quickly

Once the correct documents and payment are received, a digital motor insurance certificate can often be arranged quickly.

The certificate details should be checked carefully before the vehicle is driven.

The Financial Risk of Choosing Third-Party Only Insurance

The low premium comes with a significant trade-off.

If your car is badly damaged in an accident, stolen or destroyed by fire, you may have to absorb the entire financial loss yourself.

Imagine purchasing Third-Party Only insurance for a vehicle worth KSh 800,000. If it is written off in an accident you caused, the insurer may handle an eligible third-party liability claim, but it will not replace your KSh 800,000 vehicle.

The legal minimum is not necessarily the right level of financial protection.

Before choosing Third-Party Only insurance, ask yourself:

Can I afford to repair the vehicle after an accident?
Can I replace it if it is stolen?
Do I depend on it for business or employment?
Is the vehicle financed by a bank or another lender?
Does it operate in an area with high theft or accident exposure?
Would losing the vehicle create a major financial setback?

If the answer reveals substantial financial exposure, comprehensive insurance may be more suitable.

Third-Party, Fire and Theft Insurance

Third-Party, Fire and Theft insurance provides broader protection than Third-Party Only cover.

In addition to eligible third-party liabilities, it may protect the insured vehicle against:

Theft
Attempted theft
Fire
Self-ignition
Lightning
Certain damage connected to an insured theft or fire event

It generally does not provide full accidental-damage protection for your vehicle following a collision.

Terms, exclusions, excesses and security requirements vary by insurer.

Comprehensive Motor Insurance

Comprehensive insurance generally provides the widest level of motor protection.

Subject to the policy terms, it may cover:

Accidental damage to your vehicle
Theft
Fire
Third-party bodily injury
Third-party property damage
Malicious damage
Flood damage
Windscreen damage
Towing and recovery
Personal accident benefits
Other selected extensions

Optional benefits may include:

Excess Protector
Political Violence and Terrorism
Road rescue
Courtesy car
Loss of use
Entertainment-system cover
Enhanced windscreen limits
COMESA Yellow Card

Comprehensive insurance does not cover everything. Exclusions, excesses, valuation requirements and claim conditions still apply.

Third-Party Insurance for Financed Vehicles

Banks and asset-finance companies usually require financed vehicles to remain comprehensively insured until the loan is fully repaid.

Third-Party Only insurance may not satisfy the lender’s requirements because it does not protect the financed asset against accidental damage, theft or fire.

Before changing the level of cover on a financed vehicle, consult the lender and insurance intermediary.

What to Do After an Accident

If your vehicle is involved in an accident:

Stop safely and check whether anyone requires emergency assistance.
Contact the police and obtain the appropriate accident records.
Record the registration numbers and details of the vehicles involved.
Take photographs and videos where it is safe to do so.
Collect witness names and contact details.
Do not admit liability or promise private payment.
Notify your insurer or insurance intermediary promptly.
Complete the required accident report or claim form.
Preserve all correspondence and supporting documents.
Cooperate with the insurer’s investigation.

Leaving an accident unreported may create complications if a third-party demand arrives later.

How Imana Insurance Agency Kenya Ltd Helps

Imana Insurance Agency Kenya Ltd is a Westlands-based insurance intermediary helping individuals, families and businesses compare insurance quotations from licensed Kenyan insurers.

Imana can help you:

Compare Third-Party Only premiums
Confirm the correct vehicle class
Compare annual and available short-term options
Understand policy limits and exclusions
Upgrade to Third-Party, Fire and Theft
Compare comprehensive insurance quotations
Arrange a digital motor insurance certificate
Receive guidance when reporting a claim
Follow up on eligible claims with the insurer

Quotation comparison is free. The final premium and insurance terms are determined by the selected insurer.

Visit imanainsurance.com to request and compare motor insurance quotations.

For insurance education, claims guidance and product information, visit imana.co.ke.

For travel insurance and related protection, visit MyKava Travel & Insurance.

Frequently Asked Questions

Is Third-Party Only insurance compulsory in Kenya?

A valid policy covering the legally required third-party motor risks is compulsory when a vehicle is used on a Kenyan public road, subject to the provisions of Cap 405.

Does third-party insurance repair my car?

No. Third-Party Only insurance generally does not pay for accidental damage to the insured vehicle.

Does third-party insurance cover theft?

No. You need Third-Party, Fire and Theft or Comprehensive insurance for theft protection, subject to policy terms.

Does third-party insurance cover another person’s car?

Many Third-Party Only policies include property-damage liability up to a stated limit. Check the policy because limits and conditions vary.

Does third-party insurance cover passengers?

Passenger liability depends on the vehicle class, use and applicable policy. Vehicles carrying passengers for hire or reward must be insured under the correct PSV category.

Does it cover the insured driver’s injuries?

Ordinary Third-Party Only insurance generally does not pay the insured driver’s medical expenses. Separate Personal Accident or medical insurance may be required.

Can I buy one-month third-party insurance?

One-month or other short-term options may be available for selected vehicle categories and insurers. Availability should be confirmed when requesting a quotation.

Is third-party insurance suitable for an old vehicle?

It may be suitable where the owner accepts the risk of paying for damage, theft or fire affecting the vehicle. The decision should be based on financial exposure, not age alone.

How can I confirm whether a motor insurance certificate is genuine?

Check that the registration number, vehicle class, insurer, policy period and other certificate details are correct. You can also seek verification through the issuing insurer, intermediary or recognised motor-insurance verification channels.

The Bottom Line

Third-Party Only insurance is the legal foundation of motor insurance in Kenya, but it is not complete protection for your vehicle.

It primarily protects against specified legal liabilities involving other people. It generally does not pay for damage to your own vehicle, theft, fire or your personal medical expenses.

Before buying, compare more than the premium. Confirm the vehicle class, bodily injury protection, property-damage limit, exclusions, insurance period and claims-support process.

The cheapest certificate may keep the vehicle legally insured, but the right policy should also reflect the financial risk you can realistically carry.

To compare Third-Party Only, Third-Party Fire and Theft, and Comprehensive motor insurance quotations in Kenya, visit imanainsurance.com.

Author: Raymond Momanyi
Founder & CEO, Imana Insurance Agency Kenya Ltd
Westlands, Nairobi, Kenya

Quotation Comparison: imanainsurance.com
Insurance Authority and Information: imana.co.ke
Travel and Insurance: mykava.co.ke

This article provides general insurance information and is not legal advice. Insurance benefits, limits, premiums and exclusions depend on the insurer’s policy wording and current underwriting terms.

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