According to economics and law, insurance is a form of risk management that assists in evasion of an uncertain loss.

A lot of people find themselves in a fix when it comes to motor vehicle insurance. This is caused by the lack of knowledge on underlying motor vehicle policies and regulations.order cialis

Factors to Consider When Pin Pointing a Motor Vehicle Insurance Kenya

There are thousands of insurance companies and brokers in Kenya; however getting one that is perfectly tailored to fit your requirements can be a real hassle. Insurance is competitive and it can only be productive if it passes via the right medium.

Below are some of the things you should consider in order to get appropriate motor vehicle insurance company in Kenya.

The firm’s reputation

Reputation should always be the first thing to consider while selecting anything in life this includes, school, a partner, airline to travel with and most importantly an insurance firm.

Reputation is not about the number of people that are using the product; it should be based on licenses and the policies they offer. Mostly reputation is spread through word of mouth and one should be very careful establishing what is true or false.

Credentials of the company

A recommendable insurance brokerage should be reliable and professional and able to hold the integrity of their financial systems. The companies should be approved and registered by the nationally required standards.

Timely services

This is always difficult to configure as you only know a firm effectiveness and reliability when you are in trouble. They can only be compared with a parachute and the only way you can predict this is by establishing how the renewals are handled before settling a deal.

The Other Side of a Coin on Motor Vehicle Insurance Kenya

Unfortunately it is not always the insured that are in trouble, some of the insurance companies also find themselves ailing. Research has it that motor vehicle insurance in Kenya is not profitable.

In 2009 the association of Kenya insures (AKI) reported a loss ratio of 80:80. This mainly caused unsophisticated solutions cultured to fit in the market, careless driving, and fraud, high cases of theft, poor roads, needy driving skills and poor enforcement of traffic regulations.

However insures can change that by implementation of a proactive risk management approach that improves loss rate routine through more effectual pricing of motor vehicle peril.

The Best Motor Vehicle Insurance Companies in Kenya

Below are top 10 insurance companies in Kenya that have attained their titles and recognition through effective and reliable services.

• Dater insurance agency
• UAP insurance company
• Jubilee insurance company
• First Assurance Company
• APA insurance company
• Geminia insurance company
• Pan African Life Assurance Company
• GA insurance Company
• Amaco insurance
• Blue shield Insurance Company

Motor vehicle insurance Kenya companies should have added advantages like towing services that are a call away, Kenya Revenue Authority certificate, Log book follow up and prior arrangement to appropriate garages.

A risk occurrence is ninety percent recoverable. Insurance is an effectual approach to risk management and is defined as an evenhanded transfer of the risk of a loss in exchange of a premium. Each quantifiable risk is insurable.

Basic Types of Insurance Policies in Kenya

The world today has become so competitive thus resulting to speedy and stressful kind of life that declining general health of individuals. Loss of lives and property are repeatedly occurring incidences today, with this changing times the need of risk management is simultaneously increasing, thus taking an insurance cover has gradually become a necessity. Here are four crucial types of insurance policies in Kenya that you need to have.

Life Insurance Policies

The main aim of these policies is monetary compensation to the beneficiary of the insured upon his/her death usually defined as death benefit. The policy is either term life insurance whereby the policy allows the beneficiary to claim death benefits only if the insured dies before its expiry term or permanent life insurance.

The beneficiary entitled to receive death benefits is known as primary beneficiary, incase whereby he dies before the insured then the contingent beneficiary will be compensated. Single and group beneficiaries are defined as specific and class beneficiaries respectively if the insured states a minor as the beneficiary a guardian with a legal authority to receive the compensation should be stated in the policy. The insured has the right to revoke the beneficiary named in the policy.

Health Insurance Policies

These types of insurance policies in Kenya cover the costs of medical treatments for diverse forms of sicknesses that menace human life. Some examples of health insurance policies in Kenya include; NHIF, this is a monthly contribution to all Kenyans earning high monthly income. Casualty insurance policies cover accidents and international health insurance policies.

Secondary Insurance Policies in Kenya

Education Insurance Policies

These policies are a must to each and every household in Kenya, it’s very important to secure your children’s education this is achieved by funding it. Usually the investment period of this policies is between ten to twenty years and average minimum monthly premiums to all Kenyan insurance companies being Kshs 2000.

They are of two types education policy with profits( 3 Plans based policy, Benefits are paid on Maturity) and permanent education policy where by benefits compensation takes place only after policy expiry.

Pension Insurance policies

The trends of a life-cycle are from childhood to old age. When you grow old it is very difficult to perform some tasks because you are no longer energetic like you used to be. It’s very crucial thus to fund for old age times in order you and your family to live the same standard of life-style or even better. Example of types of pension insurance policies in Kenya include; PAYE and retirement benefits schemes.

Several other types of insurance policies in Kenya include:

• Car insurance policies
• Home insurance policies
• Property insurance policies
• Credit insurance policies
• Travel insurance policies.
• Third party insurance policies

Insurance Companies Offering the Different Types of Insurance Policies in Kenya

There a good number of insurance companies in Kenya for you insurance coverage. Most popular companies include; Jubilee Insurance, British American, ICEA, Old Mutual, Kenindia Insurance, UAP, Lion of Kenya, and Madison Insurance.

Taking insurance cover reduces financial losses thus enabling you to protect you and your loved ones. Secure a better tomorrow for your family, they don’t need to change the kind of lifestyle they are living because of calamities occurrence. Choose from the wide range types of insurance policies in Kenya, the best policies.

An Insurance broker should not be confused with insurance agents. An agent works for one specific company and chooses policies from it. The similarity between them is that they both settle claims, work on a commission basis and structure policies.

How Insurance Brokers in Kenya Work

The brokers simply provide information. The best part of working with an insurance broker in Kenya is that you pay nothing at all, the service is free (the broker is paid by the company he or she represents). These brokers provide a number of services; they sell different kinds of insurance. A broker can bundle auto insurance with one’s home owner coverage which may result to lower premium rates.

Some of the brokers may also provide other financial services like assisting one in budgeting for customer’s children’s education.

The broker takes you through a list of the different types of insurance offered by different insurance companies. He or she will help you in choosing the cover that best suits you. The policies from different companies differ hence the need to take a look at the companies’ available.

Qualities of Best Insurance Brokers in Kenya

There are many imposters of insurance brokers in Kenya and their only aim is to dupe innocent people. Below are some of the things one should look in an insurance broker before undertaking the cover.

Knowledge- The broker should have sufficient knowledge of the types of policies available. They should be able to compare the difference between various policies from different companies. This knowledge will enable him or her give the customer proper advice in choosing the policies

Honesty- It is important since he or she should be able to state clearly the advantages and disadvantages of a certain policy. They should make the customers aware of the possible impacts or profits of choosing a particular policy. Since they are after commission they would use all kinds of traps to make one purchase the cover. Customers should hence beware.

Business ethics- The broker should stick to the business ethics something which not many of them do. When brokers adhere to the ethics, they never hide the disadvantages of a policy. Without the ethics, the person will polish the disadvantages of a certain cover to suit his personal gains.

Customer focused- The broker should be able to understand the customers’ requirements so as to advise him or her properly. Any broker failing to do so should is not in a position to advice a customer.

Benefits of using insurance brokers in Kenya

Independence- The brokers work with many companies on your behalf and are in a position to offer numerous options.

Dispute resolution- Problems may arise when obtaining the cover, however, with an insurance broker the problem is easily solved.

Affordability –Since they are compensated by the companies they represent, one does not have to pay separate fees for the services provided to them.

Using insurance brokers in Kenya is convenient since it saves one’s time and money. It is the easiest way to get an insurance cover.