Matatu PSV Motor Insurance Kenya – Companies

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Matatu Insurance Companies Kenya

What comes to your mind when hear matatu business? Do you see a great venture to make money ?  Or do you see frustrations ahead when dealing with traffic officers on Kenyan roads?

So, if you are interested in investing in the Matatu business, you need to consider buying a Motor PSV insurance Cover for your Matatu business.

It is of great importance to know Motor PSV Insurance Kenya has three main covers; Third-party, fire and theft, comprehensive cover and third party.

It is also critical to comprehend the differences between these types of cover for you to make the right decision concerning purchase of motor insurance cover.

But first things first, you need to understand Matatu PSV Insurance in Kenya, what items are covered and the limitations of Matatu Insurance Policy.

What is Matatu Insurance In Kenya?

Under the category of public transport vehicles ,the following are types of PSV Vehicles;

  • Matatu and Busses, these are the most used vehicles on Kenyan roads.
  • Tour Vans, this type of vehicles are mostly used to carry tourists and visitors in and outside the city
  • Chauffeur driven cars, this type of vehicle are considered less risky because they are assigned to  specific drivers. Companies like Uber, Little cab and other Taxi Companies in Kenya use these types of vehicles.
  • Car vehicles hire, an individual hires the vehicle to use for business purpose.
  • Yellow Line Taxis, this type of vehicles operate at international airports.

The Matatu Public Service Vehicle Insurance policy covers you against liability arising from third party; death or bodily injury. It also protects you financially against third-parties-property damage and it covers the medical expenses.

There are limitations to Public Service Vehicle Insurance Policy; it won’t cover you when your vehicle is used for racing competition, rallies and social purposes.

Why is Matatu PSV Insurance Required?

Matatu PSV Insurance

Accidents happen everyday on the Kenyan roads, you need to have an insurance coverage plan when your matatu is involved in a road accident.

With the increasing number of road accident cases in Kenya, there is need for matatu vehicles to be insured.

As noted before there are three main covers under Matatu PSV Insurance, the article will discuss each of them and the reasons why they are required.

Matatu Third Party Insurance

First, third Party Vehicle Insurance Policy which covers you against any legal liabilities arising from third party bodily injury and property damage.

Third party vehicle insurance doesn’t cover the cost of damages to your car. It also doesn’t cover you financially, when your matatu is stolen, vandalized or damaged by natural disasters.

Third party motor insurance,  also doesn’t cover damages caused by you under the influence of substance abuse and alcohol abuse. When you stage an accident, the car insurance company won’t cover the cost of damages caused by you.

It is important to note that third party insurance is prerequisite for driving on Kenyan roads according to the Insurance (Motor Vehicles Third Party Risks) Act, Chapter 405

First , you need to know having third party motor vehicle insurance policy for your Matatu business is a legal requirement as stipulated on Kenya Traffic Laws and you be on the right side of the law.

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In addition it protects you financially against third party bodily injuries and third party property damage.

The following are the advantages of having third party motor vehicle insurance for your matatu business in Kenya;

  • One of its main advantages is the low costs. It has a cost effective insurance coverage  plan compared to comprehensive insurance, where premiums are high.
  • It has no complications in purchasing and renewing the insurance. It will provide a quick and easy option for you to purchase.
  • It will offer you a legal cover and protects you financially when you cause damages to the third party.

Matatu Comprehensive insurance

Second, Comprehensive Motor Vehicle insurance also referred as fully comp cover. It covers you financially when your car is stolen, vandalized, catches fire or damaged in a road accident and must be repaired. This types of cover is different from third party insurance as it acts as an additional cover.

You need to have comprehensive motor vehicle insurance in case there is an attempted theft to your vehicle. For instance, when one or more parts of your vehicle have been stolen e.g side mirror, lights tyres.

Comprehensive motor vehicle insurance also covers accidental vehicle damage to your vehicle. For most insurance policies, have a maximum limit for common damages like windscreen damage, which is up to Ksh 70,000.

When a lawsuit has been filed against you, the comprehensive  insurance, under Passenger Liability, the cover will cover you against any form of liability to the passengers who were in your vehicle.

Although, it won’t extend the coverage to your family members, when you use the vehicle for leisure purposes.

You need to have comprehensive motor insurance in case your vehicle is damaged by thunder, flooding, earthquakes or by storms.

Matatu third party, fire and theft insurance

Lastly, third party, fire and theft insurance, it covers you financially, when you cause damages to the third party. It also provides coverage where passengers get injured.

Third party, fire and theft insurance is efficient because is cost effective. It provides you with coverage for specific risks.

In addition, it has clarity and you can easily comprehend. Apart from its cost effective plan, it offers you coverage from the most common risks such as, fire and theft.

Importance Of Matatu PSV Insurance

Having Matatu Insurance gives your Matatu business the go ahead to operate on Kenyan roads because you are compliant with the Kenya traffic laws.

  • You don’t have to rob a bank in order to cover the cost of damages to the third party, the insurance provider will cover you against any form of liability arising from third party property damage and bodily injury.
  • Transferring risks to an insurance provider, saves you time and the stress of dealing with the third party in case of a road accident that has caused property damage or bodily injuries to the third party.
  • The other importance of having Matatu PSV Insurance policy, it will help you to save more in your matatu business.
  • Transferring risks to an insurance company will not affect your matatu business financial planning. The insurance company will protect you financially in case of a large scale risks such as;
    • Accidental fire
    • Theft
    • Special perils like thunder, storm, earthquakes and flooding
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Matatu PSV Insurance Companies In Kenya

Matatu PSV Insurance Companies In Kenya

Many car insurance companies in Kenya do not offer insurance to Matatu PSV, as this sector is perceived to have high risks, here are some of Matatu Insurance Companies In Kenya;

Direct Line Assurance

They provide insurance policy cover for public service vehicle; they offer two main types of insurance policies which are;

  • Third Party Only (TPO)
  • Comprehensive Cover

Third party only which is the basic legal requirement for you matatu business owner, it provides cover against third party bodily injuries , damage to the third party and also provides legal representation.

Third Party Only applies to the following categories;

  • PSV Matatu
  • PSV Bus
  • Taxi
  • Commercial Motor
  • Private Motor

These are the requirements when buying Third Party Only for your matatu business;

  • Copy of the logbook
  • Copy of National ID Card of the insured
  • Copy of the proposer’s Pin Certificate

Under Comprehensive Matatu Cover, they offer both coverage plans on liabilities arising from third party and also accidental damage or loss of vehicle spare parts.

Note that for Comprehensive Cover are annual policies. Direct Line Assurance also extends to cover political, violence and terrorism which is at an additional cost.

These are the requirements when buying Comprehensive Cover for your matatu business;

  • Copy of the logbook
  • Copy of National ID Card of the insured
  • Copy of the proposer’s Pin Certificate
  • For Comprehensive Cover, they will issue you with the valuation letter for their panel to approve
  • The age of the vehicle is an important factor

Here are the payment options provided by Direct Line Assurance;

  • You can pay via banker’s cheque
  • Mpesa paybill 509800/Till No.
  • Bank fund transfer or
  • Cash

Invesco Assurance

Invesco Assurance plays a critical role in PSV Sector, it is owned by Matatu Owners Association through its subsidiary Public Transport Investment Company Limited ( PTICL).

As a major play in PSV Sector, it has various products that meets the needs of all PSV owners and carriers.

Invesco Assurance has a professional claim department that will ensure your claims are attended and processed quickly.

The PSV Policy protects you against accidental loss or damage to the vehicle and any legal liabilities arising from third party bodily injuries and property damage.

The following documents are required when filing for a claim;

  • Claim form
  • Copy of driving licence of the driver he vehicle at the time of the incident
  • Non- motor claims

Kenya Orient Insurance Limited

They offer Passenger Service Vehicle Insurance which covers you against;

  • Accidental damage
  • Fire
  • Theft
  • Third liabilities arising from third party bodily injuries and property damage
  • Passenger liability

Note that the vehicle must be fully compliant with the the PSV rules according to Kenya Traffic laws Act ( Chapter 405)

Resolution Insurance

The company unveiled accident cover for PSV users in the country. The cover dubbed  Ziara Emergency Accident Cover, will take care of accident emergency treatment such as;

  • Ambulance treatment
  • Last expenses

KCB Insurance Agency

They provide Matatu/Bus (PSV) Insurance Policy. Under Comprehensive Passenger Service Vehicle Insurance, it covers; individuals, Matatu Saccos and transporters against accidental loss or damage to their motor vehicles and legal liability arising from third party bodily injuries and property damage.

These are the main features under Comprehensive Matatu /Bus Insurance Policy;

  • Accidental damage
  • Theft and fire
  • Third party bodily injuries such as pedestrians and passengers in other vehicles involved  in a road accident
  • Third party property damage
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The covers targets the following audiencies; transport companies, individual matatu owners,  and matatu saccos which provides transport to passengers.

How To Choose Matatu PSV Insurance Company In Kenya?

Before you invest in Matatu PSV Insurance, you need to know how the insurance policy works. Here are few factors for you to consider when buying a third party car insurance;

  • You need to compare the period and terms of conditions of the Matatu PSV insurance companies. Then choose the motor insurance company that has the best settlement practices.
  • Excellent customer service is key when choosing motor insurance company.  You need an insurance company that serves you well in a professional manner.
  • Look at the  insurance company growth, as growth is essential to any business.
  • Is the insurance company meeting your matatu business needs at the right price? You don’t need to invest in third party car insurance with high premiums and low customer satisfaction.

Tips For First Time Matatu Business Owners in Kenya

Are you a first time Matatu PSV Insurance buyer?  Here are few tips for you to consider when investing in Matatu PSV Insurance in Kenya;

  • You need to do a background check on all the available details of the Matatu insurance policies in the market.
  • Have the basic knowledge of  what items are covered and the items not included in the coverage plan.
  • Choose an insurance company that has excellent customer service that meets your matatu business needs.
  • For cost effective and a quick way to get a Matatu PSV insurance, you have to consider buying an insurance policy online.
  • When your matatu business needs are not satisfied by third party motor insurance, choose comprehensive insurance for better insurance coverage and third party, fire and theft for specific risks.
  • Choose an insurance provider that provides a cashless option. It helps in emergencies cases and saves you time.
  • It is important to evaluate your needs annually. For you to either reduce on the Matatu PSV Insurance premiums or upgrade to higher premiums.
  • Keeping a good credit score is a plus and your diver has to avoid  reckless driving. This will give you higher chances of getting better car insurance policies in the market.

You need to have peace of mind when investing in Matatu PSV Motor Insurance. Are you having trouble in getting the best deals on Matatu PSV Insurance Quotes?

At Next Insurance, we provide you with online insurance Quotes for Car Insurance Kenya, PSV Motor Insurance & Third Party Car Insurance

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