Overview of General Insurance in Kenya
What is general insurance?
General insurance or non-life insurance is insurance that covers damages to property, liability or loss of property. There are two broad categories of general insurance; personal and commercial insurance depending on whether the insured is an individual or a commercial entity. Personal insurance covers risks for individuals. Some of the insurance covers in this category include personal accidents, domestic insurance, and medical insurance. Commercial insurance, on the other hand, covers risks encountered by commercial entities. Commercial insurance covers various elements including injuries sustained during work, motor, fire, burglary, medical insurance, micro insurance, bonds, marine, liability insurance, and aviation among others.
How does general insurance work
General insurance provides the insured with a chance to recover from the insured risks by contributing a certain amount of money should the risk occur. The insurer manages this by spreading the risk among a wide group of individuals or entities who pay a certain sum of money to the insurer. The premiums paid are pooled and contributed towards those affected by a risk. The insurance company compensates the insured in various capacities depending on the terms in the policy statement.
Buying general insurance in Kenya
Buying general insurance in Kenya involves a series of steps. Most insurance companies require the insured to fill in a policy document (application form). The form may be filled directly through at the offices of the company or through intermediaries (brokers). After filling in the policy document, the applicant is now expected to pay premiums at the period decided by the insurer whether monthly or annually. The premium paid depends on the type of risk. Other factors that influence the rate of premium include the nature of the insured property, the location of an insured business and the history of the insured.
Before signing the policy document, the applicants should ensure that they understand the terms and conditions of the insurance company. After signing policy statement, the insured binds themselves to the conditions stipulated in the agreement and is subject to abiding by them, including paying all the relevant premiums. In the event of any changes to the insured risk, the insured should inform the insurer.
Why buy general insurance?
Life is full of risks and uncertainties. Insurance is an excellent way to cover these risks should they occur. If the insured suffers injury, loss or damage to property, the insurance company helps in the recovery process by giving the insured some funding. The funding may include money or help with such activities as buying materials to rebuild, helping in repairs or replacing the damaged items.