Motor Third Party Insurance

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What is Motor Third Party?

Motor third party insurance was introduced by the Motor Vehicle Insurance (Third Party Risks) Act in 1989. The Act provides for compulsory insurance against third party risks in respect to the use of vehicles.

It is mandatory that any vehicle, van or motorcycle for private or commercial use should have Motor Third Party Insurance cover. The law only exempts government owned vehicles.

Who is the Third Party under this Insurance cover?

1st Party

The owner of the vehicle, van or motorcycle.

2nd Party

The insurance company with whom the 1st party signs a contact.


3rd Party

Any other person who may be affected by the contract. The Third Party may be any road user such as the passenger or pedestrian involved in the accident (the accident victim).


Purpose of this Insurance cover

Motor Third Party Insurance basically covers financial losses arising from accidents. The contract signed between the 1st party and 2nd party is that the insurance company (2nd party) has agreed to pay the third party for the financial loss. The financial loss must arise from bodily injury or death as a result of the accident.  

 Who is NOT covered?

Motor Third Party Insurance does not cover:

  • Costs that arise as a result of damage to the insured’s own car
  • Loss resulting from wear and tear, breakdown and accidents due to drunken driving.
  • Any form of property damage unless it is specifically provided for in the policy.

How to acquire Motor Third Party Insurance

The 1st party approaches the insurance company who will determine the premium (amount to be paid) to get the cover. Premium is determined based on:

  • Type or mode of vehicle
  • Engine size and capacity
  • Purpose of the vehicle- for private or commercial use
  • Seating capacity
  • Ownership- individual or company vehicle

Once payment is done, a sticker is given which must be displayed on the vehicle or motorcycle in a clearly visible position.

The claim process for Motor Third Party Insurance

The moment the vehicle gets involved in an accident; report the incident to police and the 2nd party (insurer). Where possible let the police visit the accident scene.

Which details are given?

Reporting the accident starts off the claim process because all other parties involved have specific roles to play. After giving notice to the insurer, you will be required to fill an accident report form. Details in the form include:

  • Facts about the accident
  • Particulars of date, nature and circumstances of the accident
  • Any other details the insurer may require in relation to the accident.  a  


Documents required to make a claim

The accident victim (if possible) or representatives present the following documents to the insurer to claim:

  • Identification of the claimant
  • Police accident report which gives particulars of the vehicles involved, drivers, owners, insurers, victims, extent of injury, the party to blame, the insurance sticker, among others. The costs incurred in obtaining the police report are reimbursed by the insurance company and forms part of the total compensation.
  • Medical examination report issued by the police and is known as Police Form 3.
  • Medical doctor’s report which assesses the extent of incapacitation.
  • Receipts in respect of expenses incurred for treatment.

In case the accident victim dies in the accident, his/her representatives should present the following for compensation:

  • Deceased’s identification                         
  • Police report
  • Post mortem report
  • Letters of administration
  • Introductory letters from the LC.1 of the deceased’s area of residence


Compensation limits of cover

Under the law, the maximum liability with Motor Third Party Insurance is 1 million shillings per person and 10 million shillings in aggregate per accident.

If the claimed amount exceeds the above statutory limits, unless the insured has sufficient extra coverage in place, the claimant has an option of recourse to courts of law against the vehicle/motorcycle owner for the amount over and above the said limits.

All vehicles/motorcycle owners are therefore encouraged to secure insurance policies for improved limits since the Motor Third Party limits are viewed as low.

Motor Comprehensive Insurance

In addition to Third Party coverage, the Comprehensive Insurance Policies cover the vehicle owner, his/her car, co-passengers and immediate family members against damages or losses arising from unforeseen calamities. It is prudent to purchase a Comprehensive Motor Insurance policy.


How long does it take to settle a claim?

The law provides that after all documentation is in place and accurate and there are no disputes, the insurer must settle a claim within 60 days of reporting the incident. In cases where disputes arise, the claim should be settled within 30 days of that dispute being settled.


The Complaints Bureau

The Insurance Regulatory Authority is responsible for:

  • Safeguarding the rights of insurance policy holders and insurance beneficiaries to any contract.
  • Providing a bureau to which complaints may be submitted by the members of the public.


This information was provided by Hope for Victims of Traffic Accidents an NGO whose vision is to see a community free from road accidents through their road safety campaigns, psycho-social support and legal arbitration to the victims of road traffic accidents.