Motor Insurance 101

Oct 19, 2022

The process of choosing the ideal Motor Insurance policy might be challenging. But the technical jargon and terminology that most individuals encounter when buying any kind of motor insurance online is a common issue.

As a result, potential buyers are quite often confused and may not find what they’re looking for. In order to make the process of purchasing a policy simple for you, we’ve attempted to define some of the terminology that is frequently used in Motor Insurance.


1. What is motor insurance?

Motor Insurance is insurance that covers your vehicle against loss, fire, damage and third party loss.

Read More:
*  Frequently Asked Questions


2. Policy holder.

This is a person who owns an insurance policy with an insurance company.


3. Insurance agent (representative).

This is a person who sells insurance products on behalf of an insurance company.


4. Policy period.

This is the time period during which an insurance policy is effective.


5. Premium.

This is a sum/ amount that must be paid to enter into an insurance contract.


6. IDV – Insured Declared Value.

IDV is the highest sum that your insurance company will cover in the event that your car is damaged or stolen. The IDV, establishes the maximum claim amount for Motor Insurance.


7. Deductibles.

This is the amount of financial loss outlined in an insurance contract that the insurance holder is required to pay and for which the insurer will not be held liable; an excess.


8. Comprehensive motor insurance 

Comprehensive insurance is an auto insurance that provides protection to you, your car and third parties against all possible risks. It covers a wide array of events that can damage your car, including vandalism, fires, and rock slides on twisting escarpment roads.

Read More:
* How to generate a commercial comprehensive motor insurance quote
How to generate a private comprehensive motor vehicle insurance quote


9. TPO – Third Party Only

This covers the insured from liability arising out of the damage to third party persons and injuries caused by the insured vehicle in the use for which it is insured. If the insured’s car is engaged in a traffic accident or other incident that could result in loss to members of the public, this protects them from costs, charges, and expenses from third parties. These expenses could result from death, permanent total disability, bodily injury, or damage to third parties’ property. Additionally, this will take care of liabilities for any passengers that are transported in the vehicle.

Theft, fire, and road accident-related damage to the car are not covered by the TPO auto policy.

Read More:
How to generate a third party motor vehicle insurance quote.


10. NCB – No Claim Bonus

NCB is a premium discount provided by insurance companies if a vehicle owner has maintained a claim-free record during the duration of the policy for motor insurance. It is a reward to the vehicle owner for prudent use of the vehicle.


11. Add-ons

The add-on covers give additional policy coverage that policyholders can avail by paying a little extra premium amount. The policy coverage extension helps the car owner to deal with various situations with ease. Some of the add-on covers are roadside assistance, key replacement, return to invoice and e.t.c.


12. Endorsement

A revision to an existing insurance contract that modifies the terms of the original policy is known as an insurance endorsement. An endorsement can be issued at the time of purchase, mid-term or at renewal time. As a result, insurance premiums may change and be modified.


13. Own Damage

Own Damage refers to loss or damage to the covered vehicle due to abrupt accidents and other risks included in the policy schedule that are not specifically exempted by the policy.



All cars operating on Kenyan roads must comply with the Motor Vehicles Act and have an active Motor Insurance policy. Driving without insurance is against the law. You must therefore purchase a suitable insurance policy for your treasured pair of wheels. Secure a Motor Insurance cover that best suits your needs with mTek and drive with confidence!

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