Types, Benefits, and Leading Providers

General insurance is a critical component of financial planning for both individuals and businesses, providing protection against unforeseen risks that could otherwise lead to substantial financial losses. In Kenya, general insurance is becoming increasingly important as more people and companies recognize the need for financial security and peace of mind. Whether you’re an individual looking to protect your assets or a business owner shielding your operations, general insurance offers various options designed to cater to different needs.

What is General Insurance?

General insurance, also known as non-life insurance, includes policies that cover a wide range of risks. Unlike life insurance, which deals with the financial risks of life and death, general insurance covers various incidents and events that can happen to property, health, and individuals. The most common types of general insurance are motor vehicle insurance, medical insurance, travel insurance, personal accident insurance, goods in transit, and many more.

The primary function of general insurance is to mitigate financial losses from damage, theft, accidents, or illness. In Kenya, the general insurance market is regulated by the Insurance Regulatory Authority (IRA), ensuring transparency and consumer protection. As insurance companies grow in the country, their offerings have become more diverse, catering to the unique needs of both urban and rural populations.

Why You Need General Insurance in Kenya

In a country like Kenya, where both individuals and businesses face numerous risks such as road accidents, health emergencies, property damage, and even natural disasters, having the right insurance coverage is crucial. The financial burden from these events can be overwhelming, and insurance provides a safety net that helps people recover.

Whether it’s a car accident, a sudden illness, or damage to a home, general insurance policies allow policyholders to offset some or all of these costs. However, it’s essential to select the right type of coverage to ensure comprehensive protection, as some policies may only offer basic coverage while others can provide a wider range of benefits.

Common Types of General Insurance in Kenya

1. Motor Vehicle Insurance

Motor vehicle insurance is one of the most common types of general insurance in Kenya, as it is mandatory for all vehicle owners. In Kenya, there are three main types of motor insurance policies: Third Party, Third Party, Fire and Theft, and Comprehensive.

• Third-Party Insurance: This is the most basic form of coverage and the least expensive. It covers damage or injury caused to third parties in an accident, but it does not cover damage to your own vehicle.
• Third-Party, Fire, and Theft Insurance: This policy provides more extensive coverage than basic third-party insurance by including protection against theft or fire damage to the vehicle, in addition to third-party claims.
• Comprehensive Insurance: Comprehensive coverage is the most inclusive motor insurance policy, covering damage to your own vehicle, third-party claims, theft, fire, and even natural disasters. It’s particularly recommended for those with high-value vehicles or those who want extensive coverage.

In Kenya, companies like Jubilee Insurance, Britam, APA Insurance, and Sanlam General Insurance offer motor vehicle insurance, with comprehensive policies being the most sought-after due to their all-encompassing protection.

2. Medical Insurance

Medical insurance is crucial in Kenya due to the rising costs of healthcare. Whether you’re an individual, a family, or an organization, medical insurance offers coverage for hospital bills, outpatient care, surgery, and emergencies. Kenya’s healthcare system, especially in urban areas, can be expensive, and without insurance, paying for treatment out-of-pocket can be a significant financial burden.

There are two main types of medical insurance policies in Kenya: individual health insurance and group medical insurance.

• Individual Health Insurance: This type of coverage is ideal for individuals or families looking to protect themselves from medical expenses. Plans vary depending on the level of coverage, with options ranging from basic outpatient care to comprehensive coverage, including surgeries, specialist consultations, and hospitalization.
• Group Medical Insurance: This type of policy is ideal for employers who wish to provide health coverage for their employees. It typically includes medical consultations, hospitalization, and in some cases, maternity benefits.

Leading insurance providers in Kenya offering medical insurance include Britam Health, Jubilee Health, Sanlam Health, and AAR Insurance. The best companies provide extensive networks of healthcare facilities, access to top-tier medical professionals, and a quick claim process, making it easier for policyholders to access care when needed.

3. Travel Insurance

Travel insurance is essential for anyone traveling domestically or internationally. It covers unexpected events that can occur during travel, such as flight cancellations, lost baggage, medical emergencies, or accidents while abroad. For Kenyan travelers, it is important to have comprehensive travel insurance to safeguard against common travel risks.

Key coverage components of travel insurance include:

• Medical Emergencies Abroad: Coverage for medical treatment in case of injury or illness while traveling.
• Trip Cancellations: Reimbursement for expenses if a trip is canceled due to unexpected circumstances.
• Lost or Delayed Baggage: Compensation for personal belongings lost or delayed by airlines.

Top companies providing travel insurance in Kenya include APA Insurance, Jubilee Travel Insurance, and Allianz Insurance. These companies offer travel insurance policies that cater to both leisure and business travelers, ensuring they are covered from the moment they leave their homes until they return.

4. Personal Accident Insurance

Personal accident insurance is designed to protect individuals from financial loss due to accidental injuries, disability, or death. This type of insurance provides compensation for medical expenses, loss of income, and funeral expenses in case of death or permanent disability caused by an accident.

In Kenya, Sanlam and Jubilee Insurance offer comprehensive personal accident policies, covering everything from medical treatment and rehabilitation to funeral expenses. This is a must-have for individuals with high-risk jobs or those involved in regular physical activities that may expose them to accidents.

5. Goods in Transit Insurance

This type of insurance is designed for businesses or individuals who transport goods, whether by road, sea, or air. Goods in transit insurance covers damage, loss, or theft of goods while they are in transit from one location to another. It’s especially important for importers, exporters, and businesses that deal with large quantities of goods.

In Kenya, companies like UAP Old Mutual, AIG Insurance, and CIC Insurance provide goods in transit coverage, which protects goods from a variety of risks such as theft, accidents, or weather-related damages.

6. Work Injury Benefits Act (WIBA) Insurance

WIBA insurance is mandatory for all employers in Kenya. This insurance covers employees in the event of work-related accidents or injuries. It provides compensation for medical expenses, loss of income, and even death benefits for employees who suffer injuries or death while on duty. WIBA insurance helps employers avoid costly lawsuits and ensures employees are adequately compensated for work-related injuries.

Most Kenyan insurance companies, including Jubilee Insurance, Britam, and UAP Old Mutual, offer WIBA coverage as part of their general insurance portfolio.

7. Group Life and Last Expense Insurance

Group life insurance is typically provided by employers for their employees, offering life coverage in case of death. This can also extend to cover funeral expenses and provide financial support to dependents. Group Last Expense Insurance is another type of coverage, which primarily covers funeral costs in case of death.

In Kenya, Britam and Jubilee Life are among the key providers of these types of policies, offering affordable premiums to businesses and organizations.

Understanding Excess in General Insurance

One important term you’ll often encounter when dealing with general insurance is “excess.” This refers to the amount of money that the policyholder must pay out-of-pocket when making a claim. The excess is subtracted from the total claim amount, and the insurer covers the remaining balance.

Excess can be a flat amount (e.g., KES 5,000) or a percentage of the claim (e.g., 10%). It is important to choose a policy with an excess amount that you can afford to pay in the event of a claim. Opting for a lower premium often means higher excess, so balance is key.

Best Insurance Companies in Kenya

Several insurance companies in Kenya provide a wide range of general insurance products. When selecting an insurer, consider their reputation, claim process efficiency, customer service, and network of partners. The following companies are some of the best in the market:

• Jubilee Insurance: Known for comprehensive motor, medical, and life insurance plans, with a strong reputation for claims handling.
• Britam: Offers a wide array of general insurance products and is particularly recognized for its medical and travel insurance.
• Sanlam: A trusted name in personal accident, motor, and medical insurance.
• AIG Insurance: Known for offering robust travel and goods in transit insurance.

Why Opt for Comprehensive Insurance Over Third-Party Only

While third-party insurance is mandatory for vehicles, opting for comprehensive insurance offers significant benefits. Comprehensive insurance covers both your vehicle and third-party damages, which can save you money in case of an accident. It also protects you against other risks like fire, theft, and natural disasters.

Having comprehensive coverage can prevent you from facing hefty out-of-pocket expenses if you suffer an accident, especially with the rising costs of repairs and medical bills.

Final Thoughts 

General insurance is an essential safeguard against financial loss in the face of unexpected events. Whether it’s motor vehicle insurance, medical coverage, travel insurance, or personal accident insurance, there’s a solution for every need. With the right insurance policy, you can protect yourself, your family, and your business from the financial burden of unforeseen risks.

Take action today by exploring the various options available and choosing the best policy for your needs. At Tamara’s Financial Planning & Consultancy, we offer seamless processes, instant insurance stickers, and timely claim compensation, ensuring you have the support you need every step of the way.

Contact us now for personalized advice and get started on securing your future today!