Motor Cycle Insurance
The number of motorcycles on Kenyan roads has exploded over the last 5 years becoming an affordable and popular mode of transport. The majority of motorcycles are PSV motorcycles, commercial and lastly private motorcycles.
However, compared to many other mid income countries, the proliferation of motor cycles still remains very low as Kenyans continue to embrace affordable second hand motor vehicles from Japan. The motorcycle insurance market in Kenya consequently very small, owes to the high loss nature from road accidents and robbery or theft.
Private motorbikes are those used by owners for private and personal use mainly self-transportation. They may be used to ferry friends and family but such must be strictly not for financial reward.
PSV (BODA BODA)
This is the largest number of motorcycles on Kenyan roads. The Public Service Vehicles (PSV) commonly called bodaboda. They are used primarily for ferrying passengers for financial reward.
THIRD PARTY FIRE AND THEFT ONLY (TPF&T)
This insurance covers the all third party liabilities arising out of a road accident involving the insured and also covers the asset (motor cycle) against loss or damage by fire and theft.
This type of motorcycles is commonly used by corporate organisations, small to medium enterprises, courier companies in Kenya and they are used solely for delivery of parcels and goods.
This type of insurance covers the motorcycle and accessories from accidental damage, fire, theft and other perils like storms and flooding. It also covers the insured against financial loss due to third party bodily injuries and property damage and legal liabilities in the event of a road accident.
THIRD PARTY ONLY (TPO)
Similar to car insurance, this is the minimum legal requirement for motor cycles to be on the road. This insurance covers the insured from all liabilities resulting from third party bodily injuries and property damage.